Rautaruukki - Company Announcement

SIGNIFICANT MARKET POTENTIAL FOR RAUTARUUKKI WITHIN CONSTRUCTION AND ENGINEERING INDUSTRIES

Rautaruukki Oyj	Stock exchange release	1 October 2007                           

SIGNIFICANT MARKET POTENTIAL FOR RAUTARUUKKI WITHIN CONSTRUCTION AND ENGINEERING
INDUSTRIES                                                                      

Rautaruukki is holding its annual Capital Markets Day (CMD) for investors and   
analysts on 1-2 October 2007 in Moscow, Russia. The CMD focuses on Ruukki's     
profitable growth and its significant market potential within metal-based       
construction and engineering industries.                                        

Favourable market conditions continue                                           

At the Capital Markets Day, Ruukki's management stated that it expects the good 
market conditions in its core market areas and key customer industries to       
continue. Rapid growth in construction activity is anticipated, especially in   
Central Eastern Europe, Russia and the CIS countries.                           

Strong growth from construction and engineering customer base                   

Rautaruukki currently has investment projects worth around EUR 110 million in   
organic growth to increase delivery capability to construction customers in     
Central Eastern Europe and Russia. These projects are scheduled for completion  
in 2009. Ruukki Construction division's net sales are expected to grow          
organically more than one and a half times by 2010 from a current figure of     
around one billion euros. At the same time, the company will strengthen its     
leading position as a solutions supplier for metal-based construction in its    
core market areas.                                                              

Ruukki is also seeking growth from customers in the lifting, handling and       
transportation equipment (LHT) and energy sectors. Ruukki has grown its business
in the LHT industry through acquisitions, which have brought new customers and  
improved the company's capability to deliver components and systems. Ruukki     
estimates that its target market in this business has grown to around EUR 10    
billion. Integration and actions to improve the efficiency of the acquired units
are underway. This will impact negatively on the division's result during the   
second half of 2007. However, efficiency measures are expected to have a        
positive impact on Ruukki Engineering division's result in 2008.                

Special products accounting for growing share of net sales in steel business    

In the steel business, Ruukki's focus is on special products. The company plans 
to increase the share of special products of Ruukki Metals division's net sales 
from a current figure of 24 per cent to 40 per cent by 2010. Special products   
also complement the business of Ruukki Construction and Ruukki Engineering.     
Ruukki Metals aims to strengthen its market position in its core market areas in
the Nordic countries, the Baltics and in Northwest Russia.                      

The investment to increase the capacity of high-strength steels at the Raahe    
Works in Finland came on stream in August. As a result, delivery volumes of     
plate products were down somewhat compared to last year. In addition, Ruukki    
Metals' sales are not as high during the third quarter as in other quarters due 
to seasonal fluctuations in the division's core market area.                    

Ruukki's financial targets                                                      

Ruukki aims at annual top line growth of over 10 per cent and EBIT of over 12   
per cent. The target for the return on capital employed is over 20 per cent and 
the gearing ratio less than 60 per cent. The dividend policy is 40-60 per cent  
of earnings per share.                                                          

Earnings forecast for 2007 unchanged                                            

The company's net sales for 2007 are expected to grow in line with growth       
targets set. The company has not revised its earnings forecast for the whole    
year and operating profit for 2007 is anticipated to markedly exceed the        
comparative figure of EUR 515 million reported in 2006.                         

Capital Market Day presentation material                                        

The Capital Market Day presentation material in English will be available on the
company's website on 1 October at about 1.30pm Finnish time at                  
www.ruukki.com>investors                                                        


Rautaruukki Corporation                                                         
Anne Pirilä, SVP, Corporate Communications and Investor Relations               



Rautaruukki supplies metal-based components, systems and integrated systems to  
the construction and mechanical engineering industries. The company has a wide  
selection of metal products and services. Rautaruukki has operations in 23      
countries and employs 14,500 people. Net sales in 2006 totalled EUR 3.7 billion.
The company's share is quoted on the OMX Nordic Exchange Helsinki (Rautaruukki  
Oyj: RTRKS). The Corporation has used the marketing name Ruukki since 2004.     
www.ruukki.com                                                                  


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OMX Nordic Exchange, Helsinki                                                   
Main media                                                                      
www.ruukki.com