Outokumpu Oyj - Company Announcement

Outokumpu establishes a new long-term share-based incentive program

STOCK EXCHANGE ANNOUNCEMENT
February 3, 2009 at 1.20 pm

The Board of Directors of Outokumpu approved today a new share-based
incentive plan to be offered to the key management of Outokumpu.

The Share-based Incentive Program 2009-2013 is a part of the
remuneration and commitment program for the key management and its
purpose is to reward good performance which supports the Company's
strategy and at the same time to direct the management's attention to
increasing the company's shareholder value over a longer period of
time. The program offers a possibility to receive Outokumpu shares
and cash (equaling to the amount of taxes of the total reward) as an
incentive reward, if the targets set by the Board for each earning
period are achieved.

The Program will last five years, comprising three earning periods of
three calendar years each. The earning periods commence on January 1,
2009, January 1, 2010 and January 1, 2011. The Board approves the
number of participants, final allocations and performance criteria
separately for each earning period. Today the Board approved 139
employees to be in the scope of the Program for the earning period
2009-2011.

The amount of reward will be determined and paid to the participants
on the basis of the achievement of performance targets after the
financial statements of the last year of earning period have been
prepared. The rewards to be paid on the basis of the program will
correspond to a maximum of 1 500 000 Outokumpu shares. No new shares
will be issued in connection with the program and therefore the
incentive plan will have no diluting effect.

In accordance with the targets confirmed for the earning period
2009-2011 the reward is based on relative development of TSR (Total
Shareholder Return).

The participant may not dispose of the shares received under the
program for a period of 12 months from the time of receipt of the
shares. According to the share ownership plan of the Outokumpu Group
the members of the Group Executive Committee are obliged to own
Outokumpu shares received under incentive programs for the value of
their annual gross base salary.


OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations and Financial Communications
tel. + 358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com
www.outokumpu.com

Attachments:

ENG Option scheme 3.2.09.pdf