RUUKKI GROUP FOCUSES ITS OPERATIONS ACCORDING TO STRATEGY


Ruukki Group purchases majority interest in Junnikkala and Pyyn Saha sawmills in
Ostrobothnia.                                                                   

Ruukki Group focuses on wood-based industrial business operations. Currently the
group operations are located mainly in Finland, but in future the targeted      
emphasis is principally in Russia.                                              

At present Ruukki Group expands its operations in sawmilling business through   
acquisitions. In addition, opportunities to make structural changes in house    
building and care services are being investigated with a target of potentially  
exiting these businesses.                                                       

Ruukki Group has agreed to acquire a majority interest in Junnikkala group.     
Junnikkala Oy practises sawmilling business in Kalajoki, Ostrobothnia, and its  
subsidiary Juneropt Oy specialises in further processing of sawn wood targeted  
especially for prefabricated housing business. The annual production capacity of
the Junnikkala sawmill is at present 130,000 cubic meters of sawn wood. At the  
same time, Junnikkala Oy has agreed to acquire all shares of Pyyn Saha ja       
Höyläämö Oy, which operates in Oulainen. The current annual production capacity 
of Pyyn Saha ja Höyläämö Oy is close to 40,000 cubic meters.                    

The business and investment plans for the newly formatted Junnikkala group are  
based on increasing the total combined capacity to 300,000 cubic meters during  
the next two to three years. In addition, further processing will be developed  
in the planing and painting operations. The Oulainen sawmill will be focusing on
sawing smaller logs, whereas Kalajoki sawmill will be concentrating on further  
processing in addition to sawing operations. The consolidated revenue of the    
newly formed Junnikkala group is estimated to have totalled nearly EUR 50       
million in 2007 and the operating profit to have been positive.                 

As a result of these arrangements, the annual production capacity of Ruukki     
Group's sawmilling business will increase immediately from approximately 200,000
cubic meters to nearly 400,000 cubic meters, and by 2010 the total capacity is  
to reach 500,000 cubic meters level.                                            
                                                                                
The current Junnikkala shareholders will continue as minority shareholders of   
Junnikkala Oy. The arrangement will be carried out through a combination of     
share transactions, directed share issue and share swap, after which Ruukki     
Group will have a 51 % ownership in Junnikkala group. The total investment of   
Ruukki Group is at the present stage a total of EUR 9 million of which          
approximately 40 % is to be used for the company's future investments according 
to business plans.                                                              

”The arrangement will support Ruukki Group's strategy to enhance wood-based     
industrial operations. Moreover, this transaction will contribute to the target 
of strengthening wood processing industry in Northern Finland.”, states Matti   
Vikkula, CEO of Ruukki Group Plc.                                               

“To get Ruukki Group's sawmilling business segment involved into Junnikkala     
group will enable the implementation of the strong growth strategy of Junnikkala
and Pyyn sawmills. In the Ruukki's operating model entrepreneurship will stay as
a fundamental principle”, says Juha Junnikkala, Managing Director of Junnikkala 
Oy.                                                                             

The board of directors of Ruukki Group has decided to explore during the first  
half of this year opportunities to make structural arrangements in the house    
building business segment (Pohjolan Design-Talo Oy) and in the care services    
segment (Mikeva Oy) with a target to dispose of those businesses. These         
investigations will be made in co-operation with external advisors.             

For additional information, please contact:                                     

Matti Vikkula                                                                   
CEO                                                                             
Ruukki Group Plc                                                                
Tel. +358 45 6700 606                                                           
www.ruukkigroup.fi                                                              

Antti Kivimaa                                                                   
Executive Vice President                                                        
Ruukki Group Plc                                                                
Tel. +358 400 501 780                                                           
www.ruukkigroup.fi                                                              

Juha Junnikkala                                                                 
Managing Director                                                               
Junnikkala Oy                                                                   
Tel. +358 44 558 1629                                                           
www.junnikkala.com