Rautaruukki - Company Announcement

Rautaruukki Corporation's Board of Directors has resolved on a new incentive plan for key employees

Rautaruukki Corporation Stock exchange release 14 December 2010, at 4pm.

Rautaruukki Corporation's Board of Directors has approved a new share-based
incentive plan for the group's key employees. The plan aims to align the
objectives of shareholders and key employees to increase shareholder value, to
commit key employees to the company and to offer them a competitive reward plan
based on ownership of shares in the company.

The plan includes three one-year earning periods, which are the calendar years
2011, 2012 and 2013. Furthermore, the plan includes one three-year earning
period, 1 January 2011-31 December 2013. The company's Board of Directors will
decide on the earning criteria and the targets to be established for them at the
beginning of each earning period. Any bonus for the earning period 2011 will be
based on Rautaruukki's consolidated net sales growth and return on capital
employed (ROCE) and, for the earning period 2011-2013, on the corporate
strategic targets.

Any bonuses for the earning period 2011 will be paid in 2012, partly in the form
of company shares and partly in cash. Any bonuses for the earning period
2011-2013 will be paid in 2014. The proportion to be paid in cash will cover
taxes and tax-related costs arising from the bonus. The bonus payable on the
basis of the plan during three years will not exceed three years' gross salary
of the key person concerned.

The shares may not be transferred during the lock-up period, which will end
three years after the end of the earning period. Should a key person's
employment or service in a group company end during the lock-up period, he or
she must return, gratuitously, the bonus shares received to the company. Members
of the Corporate Executive Board must hold shares also after the lock-up period
such that the total value of his or her shareholding corresponds to the value of
his or her gross annual salary. Such number of shares must be held for as long
as his or her employment or service in a group company continues.

The new plan covers approximately 100 people. The bonuses to be paid on the
basis of the plan for the earning periods 2011 and 2011-2013 will equate to the
value of a maximum aggregate of approximately 1,200,000 Rautaruukki Oyj shares
(including also the proportion to be paid in cash).

Rautaruukki has operated share bonus incentive plans for key employees since the
year 2000.

For further information, please contact Sakari Tamminen, President & CEO, tel.
+358 20 592 9075

Rautaruukki Corporation

Anne Pirilä
SVP, Communications and Investor Relations

Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and engineering industries. The company has a wide selection of
metal products and services. Rautaruukki has operations in 27 countries and
employs 11,800 people. Net sales in 2009 totalled EUR 2.0 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation
uses the marketing name Ruukki.

Distribution:
NASDAQ OMX Helsinki
Main media
www.ruukki.com





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