CEO David Sutherland rang the closing bell in December to mark IPSCO's 10th anniversary of listing on the New York Stock Exchange.

Above all, we strive to be regarded as their most dependable supplier and we consistently measure how we are doing. I am proud to report that an independent survey of our plate customers for 2006 ranked IPSCO #1 in overall customer satisfaction for the second straight year.

THE YEAR AHEAD
The steel industry will continue to be cyclical, although likely less so than in years past as a result of recent consolidation and a steady rise in global demand. We will also continue to benefit from diversification and value-adding strategies which have helped stabilize earnings. What's more, the outlook in our chosen businesses remains strong. Our plate customers are projecting steady activity in 2007, business in the energy sector is expected to pick up early in the year and we are adding capacity in large diameter pipe to keep up with demand.

Meanwhile, our financial position remains strong. During the past year, IPSCO's unsecured senior debt was elevated to investment grade by two of North America's principal rating agencies, Moody's and Standard & Poor's. We also remain firmly on track with regard to the integration and optimization of our new facilities and expect to exceed our initial $25 million synergy targets during 2007.

As we close the books on 2006, IPSCO's 50th year of operation and the 10th anniversary of our listing on the New York Stock Exchange, I would like to thank our loyal customers and suppliers for making another great year possible. I would also like to thank our now more than 4,400 employees for helping us achieve record operating results while carefully shaping the conditions for IPSCO's continued success in the years ahead.

David Sutherland
President and Chief Executive Officer

March 1, 2007