Outokumpu Oyj - Company Announcement

Outokumpu participated in the initial public offering of Talvivaara

Outokumpu has participated in the IPO of Talvivaara Mining Company
Ltd. by subscribing approximately 10.9 million shares, resulting in a
4.9% ownership in the company on a fully diluted basis, with a total
consideration of some EUR 32 million.

Outokumpu divested the Talvivaara exploration project in 2004 and
held an option to subscribe shares with a 20% discount in a possible
IPO, representing up to 5% ownership in the company. The IPO of
Talvivaara Mining Company Ltd. has now been completed and the listing
of the shares has started today on the London Stock Exchange.

As announced earlier, Outokumpu has also exercised its option, part
of the divestment agreement, to acquire a 20% stake in the Talvivaara
nickel mining project company (Talvivaara Project Ltd.) owned by
Talvivaara Mining Company Ltd., for a total consideration of one
euro.

Talvivaara Project Ltd. will be consolidated in Outokumpu's
consolidated income statement as an associated company reflecting
Outokumpu's 20% holding. The fair valuation of Outokumpu's 20% stake
is estimated to result in a non-recurring gain in excess of EUR 100
million, which will be booked in financial income in the second
quarter 2007 income statement. The shareholding in the listed
Talvivaara Mining Company Ltd. will be classified as an
available-for-sale financial asset with changes in fair value
recognized directly in equity.

The Talvivaara mine is estimated to start production of nickel and
other metals at the end of 2008. Its target is to gradually ramp up
its nickel output to some 33 000 tons annually.


Further information: Eero Mustala, SVP - Corporate Communications,
tel. +358 9 421 2435,
eero.mustala@outokumpu.com


OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations
tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com