Raute - Company Announcement

RAUTE CORPORATION'S EMPLOYEE NEGOTIATIONS CONCLUDED

RAUTE CORPORATION	STOCK EXCHANGE RELEASE 19 NOVEMBER 2010 at 11:45 a.m.         


RAUTE CORPORATION'S EMPLOYEE NEGOTIATIONS CONCLUDED                             

Negotiations at Raute Corporation in accordance with the Act on Co-operation    
within Undertakings concerning temporary lay-offs and termination of employments
of salaried and senior salaried employees of Raute's Finnish units have been    
concluded. The negotiations, which were initiated on 8 October 2010, concerned  
measures to adapt the operations to the continuing weak demand and the          
fluctuation of the order book, and to improve the profitability.                

As a result of the negotiations it was agreed that the company will terminate   
the employment contracts of a total of 18 salaried and senior salaried employees
in its units in Nastola and Kajaani in Finland instead of 25 employees given in 
the employer's proposal. It was further agreed that a part of the targeted cost 
savings related to the required employee reduction will be implemented through  
internal changes in duties.                                                     

In addition, it was agreed that the adaptation measures of the salaried and     
senior salaried employees of Raute's Finnish units will be continued as         
temporary lay-offs of a fixed duration according to the financial situation and 
the workload. The temporary lay-offs of the hourly workers in the Nastola       
production plant will be continued according to the previously concluded        
adaptation measure results.                                                     

The concluded negotiation results will generate to Raute a cost of around EUR   
0.5 million for the last quarter 2010. The adaptation measures will not have an 
impact on Raute's net sales and financial performance forecasts for 2010. Net   
sales for the entire year 2010 will increase and the operating profit will be   
positive.                                                                       

At the end of September, Raute Group employed altogether 511 persons, of which  
the Finnish units accounted for 383 persons.                                    


RAUTE CORPORATION                                                               
Tapani Kiiski                                                                   
President and CEO                                                               


FURTHER INFORMATION:                                                            
Mr. Petri Strengell, Vice President, Technology and Operations, tel. +358 3 829 
3510, mobile +358 40 758 6580                                                   
Mrs. Anne Aaltonen, Group HR Manager, tel. +358 3 829 3278, mobile +358 40 830  
7826                                                                            

DISTRIBUTION:                                                                   
NASDAQ OMX Helsinki Ltd, main media, www.raute.com                              

RAUTE IN BRIEF:                                                                 
Raute is a technology company serving the wood products industry worldwide. Its 
most important customers are the plywood and LVL industries. Raute is one of the
world's leading suppliers of mill-scale projects to these customer industries.  
The total service concept also includes technology services, with which Raute   
supports its customers throughout the entire life cycle of their investments.   
Raute's head office is located in Nastola, Finland. Its other production plants 
are in the Vancouver area of Canada, in the Shanghai area of China, and in      
Kajaani, Finland. Raute's net sales declined significantly due to the difficult 
market situation in 2009 and equaled EUR 36.6 million. The number of personnel  
at the end of 2009 was 524. More information on the company can be found at:    
www.raute.com.