2007-10-25 08:00:00 CEST

2007-10-25 08:00:00 CEST


REGULATED INFORMATION

English Finnish
Raute - Quarterly report

RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2007


- Net sales totaled MEUR 85.1 (MEUR 73.7), up 15.5% on the comparison period.   
- Operating profit, MEUR 6.2 (MEUR 2.2), and profit before tax, MEUR 6.5 (MEUR  
2.5), improved considerably.                                                    
- Earnings per share were EUR 1.24 (EUR 0.50).                                  
- The order intake was MEUR 48 (MEUR 89), and the order book at the end of the  
reporting period was MEUR 44 (MEUR 69).                                         
- Net sales are expected to grow moderately in 2007 and operating profit to     
improve clearly over the previous year.                                         


MR. TAPANI KIISKI, PRESIDENT AND CEO: A GOOD QUARTER IN COMPARISON WITH THE DIP 
LAST YEAR                                                                       

In terms of profitability, the past third quarter was Raute's best under the    
current business structure. Our performance improved in the first part of the   
year due to the whole organization working together successfully. This resulted 
in increased net sales, better project risk management and delivery quality, as 
well as development of the subcontracting chain. Even loading also had a        
positive impact on profitability. While success was seen in all of our units, a 
special contribution to profit development came from our Chinese operations,    
which were set up last year. The first phase of operations in China clearly     
exceeds the goals.                                                              

The market outlook of our customers has remained at a good level in all of our  
market areas, except for North America. Several small investments, individual   
production lines, and veneer mill-scale projects have been launched after the   
slow period at the beginning of the year. However, decisions on the construction
of new plywood or LVL mills have been further postponed. The low order intake in
the first part of the year has brought our order book down to a normal level.   
Based on the number and progress of investment projects in the planning phase, I
believe that our order book will strengthen in the latter part of the year.     

Our business still faces the same uncertainty factors as before. The US dollar  
has continued to weaken and the price of wood raw material has remained high. On
the other hand, the demand for investments in Russia is brisker than ever.      

The positive profit development in the first three quarters and the order book  
for the latter part of the year gives us good reason to be positive about the   
rest of the year.                                                               


MARKET SITUATION                                                                

Market situation in customer industries                                         

The demand, production volume, and sales prices in Raute's customer industries  
have remained at a good level throughout the first part of the year, with the   
exception of North America. The price of round wood has remained very high in   
most market areas. Problems related to wood supply are restricting production in
Europe, especially in the areas neighboring Russia.                             

Uncertainties in the US housing market have affected the demand for wood        
products used in building. The demand is not expected to pick up until 2009.    

Demand for wood products technology                                             

Investment demand in the plywood, veneer, and LVL industries has remained active
everywhere except the North American markets. Considering the large number of   
quotation requests, relatively few investment projects have actually been       
launched. The number of quotation requests for large projects has increased from
the first part of the year. Some of the many mill-scale projects currently in   
the planning phase are expected to proceed to the decision-making phase before  
the end of the year.                                                            

The demand for technology services has remained at a good level. In North       
America, demand is also sluggish in the services field.                         

Order intake and order book                                                     

Raute's business consists of project deliveries and technology services to the  
wood products industry. Project deliveries encompass complete mills, production 
lines, and single machines and equipment. Technology services include           
maintenance, spare part services, modernizations, consulting, training, and     
sales of reconditioned machinery.                                               

The order intake in the first part of the year amounted to EUR 48 million (MEUR 
89). The order intake for projects remained low, at EUR 26 million (MEUR 69)    
and the order intake for technology services was EUR 22 million (MEUR 20).      

The third-quarter order intake amounted to EUR 15 million (MEUR 40). The        
comparison period comprised two mill-scale orders. This year's most important   
deals in the third-quarter were for a veneer mill in Lithuania and a peeling    
line in Brazil. This peeling line order was the third made by the same customer 
in the past two years.                                                          

The order book at the end of the reporting period was EUR 44 million (MEUR 69). 

Competitive position                                                            

Raute is particularly competitive in major projects for the plywood, veneer, and
LVL industries. It bases its competitive position on state-of-the-art technology
supported by strong product development, a range of solutions that cover the    
customers' entire production process and its life cycle, as well as good        
reference deliveries.                                                           

Considerable investments in the offering and productization of technology       
services have created a solid foundation on which  this year's good profit      
development is partly based.                                                    

The US dollar dropping to a very low level has eroded Raute's price             
competitiveness in comparison with competitors whose expenses are mainly        
calculated in dollars. To compensate for this, Raute actively carries out       
productivity-enhancing activities.                                              


NET SALES AND RESULT                                                            

Net sales for the reporting period were EUR 85.1 million (MEUR 73.7), up 15.5   
percent on the comparison period.                                               

The progress made in the four mill-scale orders in 2006 has changed the         
distribution of net sales by market area. Russia took over as the biggest market
area in the reporting period, accounting for 38% (13%) of net sales, while North
America's share of net sales rose to 24% (17%). Europe's share dropped to 26%   
(27%) and that of other market areas to 12% (42%).                              

Net sales in the reporting period were generated exclusively by technology      
services and project deliveries related to the wood products technology         
business. Technology services increased by 29% over the comparison period and   
accounted for 25% (23%) of net sales.                                           

The Group's operating profit, EUR 6.2 million (MEUR 2.2), and profit before tax,
EUR 6.5 million (MEUR 2.5), increased from the comparison period. Profit        
improved due to an increase in net sales, successful project deliveries and     
improved productivity, and a decrease in expenses enabled by more even loading. 
Operating profit percentage was 7.2% (3.0%). The profit for the period was EUR  
5.0 million (MEUR 1.9), and earnings per share were EUR 1.24 (EUR 0.50).        

Third-quarter net sales were EUR 26.5 million (MEUR 18.7). Operating profit     
totaled EUR 2.4 million (MEUR -0.3) and accounted for 9.2% (-1.7%) of net sales.
Profit improved considerably over the exceptionally weak comparison period.     
Third-quarter profit amounted to EUR 1.8 million (MEUR -0.3), while earnings per
share were EUR 0.46 (undiluted EUR -0.08).                                      
                                                                                

FINANCING                                                                       

The Group's financial position remained strong. At the end of the period,       
gearing was -12.8% (-52.7%) and equity ratio 68.3% (65.6%). The balance sheet   
total has decreased by EUR 14.4 million from the beginning of the year, totaling
EUR 54.1 million (MEUR 56.2) at the end of the reporting period. The fluctuation
in balance sheet items and the key ratios based on them results from differences
in the timing of customer payments and the cost accumulation from project       
deliveries, which is typical of project business.                               

Cash and cash equivalents, including financial assets recognized at fair value  
through profit or loss, were EUR 4.6 million (MEUR 14.9) at the end of the      
period. The change in cash and cash equivalents in the reporting period was EUR 
19.4 million negative (MEUR 3.5), and operating cash flow was EUR -16.6 million 
(MEUR 5.6). Investment cash flow was EUR -1.1 million (MEUR -1.3). Financing    
cash flow, EUR -1.7 million (MEUR -0.8), includes EUR 2.8 million in dividend   
payments for 2006 (MEUR 2.3).                                                   

Interest-bearing liabilities amounted to EUR 0.6 million (MEUR 0.5) at the end  
of the period, and unused long-term credit limits to EUR 15 million. The company
also has a EUR 10 million commercial paper program.                             


RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE                          

Research and development costs totaled EUR 3.1 million (MEUR 2.7) in the        
reporting period, representing 3.7% (3.7%) of net sales. The increase in        
research and development costs was caused by differences in the timing of       
product development projects                                                    

Investments totaled EUR 1.1 million (MEUR 1.4) and consisted of information     
system and other replacement investments.                                       


PERSONNEL                                                                       

The Group's headcount at the end of the reporting period was 572 (534).         
Converted to full-time employees, the average number was 570 (539). The         
headcount increased over the comparison period as a result of the development of
Chinese operations and changes in loading at North American companies. Group    
companies outside Finland accounted for 25% (21%) of employees at the end of the
period.                                                                         


CORPORATE GOVERNANCE                                                            

The Annual General Meeting held on March 21, 2007, elected Mr. Jarmo Rytilahti  
as Chairman of the Board, Ms. Sinikka Mustakallio as Vice-Chairman, and Mr. Mika
Mustakallio, Mr. Panu Mustakallio, Mr. Pekka Paasikivi, and Mr. Jorma Wiitakorpi
as Board members.                                                               

All of the Board members are independent of the company. Chairman Jarmo         
Rytilahti and two of the members (Pekka Paasikivi and Jorma Wiitakorpi) are     
independent of major shareholders.                                              

The chairman of the Appointment Committee is Mr. Jarmo Rytilahti, while Ms.     
Sinikka Mustakallio and Mr. Ville Korhonen, a representative of a major         
shareholder, act as its members. The Working Committee is chaired by Mr. Jarmo  
Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Pekka Paasikivi.  
The Audit Committee's tasks are handled by the Board of Directors.              

Authorized Public Accountants Anna-Maija Simola and Antti Unkuri are the        
company's auditors, and Ernst&Young Oy, an authorized public accounting company,
is deputy auditor.                                                              

The Group's President and CEO is Mr. Tapani Kiiski. Raute's Executive Board also
includes Ms. Arja Hakala, CFO; Mr. Petri Strengell, Vice President, Technology  
and operations; Mr. Timo Kangas, Vice President, Technology services; and Mr.   
Bruce Alexander, President of North American operations.                        


SHARES                                                                          

The number of Raute Corporation's shares at the end of the reporting period     
totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20    
votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a    
nominal value of two euro. Series K shares can be converted to series A shares  
under the terms described in section 3 of the Articles of Association. If a     
series K share is transferred to a new owner who does not previously hold series
K shares, other shareholders of the K series have the right to redeem the share 
under the terms described in Section 4 of the Articles of Association.          

Raute Corporation's series A shares are listed on the OMX Nordic Exchange       
Helsinki. The trading code is RUTAV. Raute Corporation has signed a market      
making agreement with Nordea Bank Finland plc in compliance with the Liquidity  
Providing (LP) requirements issued by the Helsinki Stock Exchange.              

The company's market capitalization at the end of the reporting period was EUR  
52.9 million (MEUR 50.2), with series K shares valued at the closing price of   
series A shares on September 30, 2007, that is EUR 13.20 (EUR 12.90).           

Other share-related information is presented in the interim report figures      
section.                                                                        

Board authorizations                                                            

The company's Board of Directors has been authorized by the Annual General      
Meeting held on March 21, 2007, to decide on the buyback and directed an issue  
of a maximum of 400,000 of the company's series A shares. The authorizations are
effective until the next Annual General Meeting. The Board of Directors has not 
exercised this authorization.                                                   


DIVIDEND FOR THE FINANCIAL YEAR 2006                                            

The Annual General Meeting decided to distribute a dividend of EUR 0.70 per     
share for 2006. The date of payment was April 2, 2007. The total amount of      
dividend paid was EUR 2.8 million.                                              


SHAREHOLDERS                                                                    

The number of shareholders totaled 1,144 at the beginning of the year and 1,219 
(1,033) at the end of the reporting period. Series K shares are held by 46      
private individuals (46). The management held 4.7% (4.5%) of company shares and 
9.1% (9.1%) of votes. Nominee-registered shares accounted for 2.8% (1.2%) of    
shares.                                                                         

The company did not possess company shares during the reporting period or hold  
them as security.                                                               

No flagging notifications were given to the company in the reporting period.    


SEASONAL FLUCTUATION IN BUSINESS                                                

The Group's net sales and working capital fluctuate in every quarter due to     
different types of project deliveries and their schedules. Business does not    
involve systematic seasonal changes, with the exception of technology services  
delivered to Finland, many of which take place during service shutdowns in the  
summer.                                                                         


BUSINESS RISKS                                                                  

Hedging of foreign currency receivables                                         

Items related to business payments and denominated in foreign currency are      
hedged with currency derivatives when contracts take effect.                    

Forward contracts in Canadian and US dollars related to the economic hedging of 
payments from binding sales agreements had a nominal value of EUR 6.6 million   
(MEUR 2.1) at the end of the reporting period. No forward contracts subject to  
fair value hedging were effective at the end of the reporting period.           

The measurement of forward contracts in compliance with IFRS had a positive     
impact of EUR 0.3 million on net sales and operating profit (MEUR 0.1) compared 
to the Finnish Accounting Standards.                                            


OUTLOOK FOR 2007                                                                

The demand for investments in Raute's customer industries is expected to remain 
good. Brisk demand is forecasted to generate new orders in several market areas 
in the last part of the year and therefore the order book is expected to        
strengthen for the coming year.                                                 

Due to the good development in the first three quarters and the order book for  
the rest of the year, net sales in 2007 are expected to increase moderately and 
operating profit to improve considerably over the previous year.                

CONSOLIDATED INTERIM FINANCIAL STATEMENTS JANUARY 1 - SEPTEMBER 30, 2007 		     
						                                                                          
Figures are not audited					                                                   
(Figures in EUR 1 000)	 	 	 	 	 	                                               
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| CONSOLIDATED INCOME      | Note| 1.7. - | 1.7. - | 1.1. - | 1.1. - |  1.1. - |
| STATEMENT                |     |  30.9. |  30.9. |  30.9. |  30.9. |  31.12. |
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|                          |     |   2007 |   2006 |   2007 |   2006 |    2006 |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
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| NET SALES                |2,3,4| 26 466 | 18 666 | 85 116 | 73 711 | 106 206 |
|                          |     |        |        |        |        |         |
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|                          |     |        |        |        |        |         |
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| Other operating income   |     |     17 |     30 |     75 |    127 |     199 |
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|                          |     |        |        |        |        |         |
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| Increase (+) or decrease |     |    103 |   -508 |    295 |    -98 |    -111 |
| (-) in inventories of    |     |        |        |        |        |         |
| finished goods and work  |     |        |        |        |        |         |
| in progress              |     |        |        |        |        |         |
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|                          |     |        |        |        |        |         |
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| Materials and services   |     | 14 653 | 10 146 | 49 089 | 42 928 |  62 418 |
--------------------------------------------------------------------------------
| Expenses from employee   | 7   |  6 397 |  5 539 | 20 772 | 19 130 |  26 227 |
| benefits                 |     |        |        |        |        |         |
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| Depreciation,            |     |    684 |    616 |  2 000 |  1 790 |   2 660 |
| amortization and         |     |        |        |        |        |         |
| impairment charges       |     |        |        |        |        |         |
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| Other operating expenses |     |  2 412 |  2 211 |  7 457 |  7 679 |  10 476 |
--------------------------------------------------------------------------------
| Total operating expenses | 6   | 24 146 | 18 512 | 79 319 | 71 527 | 101 781 |
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|                          |     |        |        |        |        |         |
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| OPERATING PROFIT         |     |  2 440 |   -324 |  6 166 |  2 214 |   4 513 |
--------------------------------------------------------------------------------
| % of net sales           |     |    9 % |   -2 % |    7 % |    3 % |     4 % |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Financial income         |     |     -1 |    184 |    501 |    546 |     745 |
--------------------------------------------------------------------------------
| Financial expenses       |     |    -57 |    -92 |   -162 |   -286 |    -371 |
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|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX        |     |  2 382 |   -233 |  6 506 |  2 474 |   4 887 |
--------------------------------------------------------------------------------
| % of net sales           |     |    9 % |   -1 % |    8 % |    3 % |     5 % |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Income taxes *)          |     |   -536 |    -66 | -1 531 |   -539 |  -1 255 |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD    |     |  1 845 |   -299 |  4 974 |  1 935 |   3 632 |
--------------------------------------------------------------------------------
| % of net sales           |     |    7 % |   -2 % |    6 % |    3 % |     3 % |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| *) Income taxes represent the tax corresponding to the period's result,      |
| based on the estimated full-year tax rate.                                   |
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|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Breakdown                |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Minority interest        |     |      0 |      0 |      0 |      0 |       0 |
--------------------------------------------------------------------------------
| Share of profit that     |     |  1 845 |   -299 |  4 974 |  1 935 |   3 632 |
| belongs to owners of the |     |        |        |        |        |         |
| parent company           |     |        |        |        |        |         |
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|                          |     |        |        |        |        |         |
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| Earnings per share, EUR  |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Undiluted earnings per   |     |   0,46 |  -0,08 |   1,24 |   0,50 |    0,94 |
| share                    |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Diluted earnings per     |     |   0,46 |  -0,08 |   1,24 |   0,49 |    0,94 |
| share                    |     |        |        |        |        |         |
--------------------------------------------------------------------------------
|                          |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Shares (1 000 pcs)       |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Adjusted average number  |     |  4 005 |  3 834 |  4 005 |  3 834 |   3 867 |
| of shares                |     |        |        |        |        |         |
--------------------------------------------------------------------------------
| Adjusted average number  |     |  4 005 |  3 957 |  4 005 |  3 957 |   3 867 |
| of shares diluted        |     |        |        |        |        |         |
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| CONSOLIDATED BALANCE    | Note |     |    |     30.9. |    30.9. |    31.12. |
| SHEET                   |      |     |    |           |          |           |
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|                         |      |     |    |      2007 |     2006 |      2006 |
--------------------------------------------------------------------------------
| ASSETS                  |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Fixed assets and other  |      |     |    |           |          |           |
| non-current assets      |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Intangible assets     |      |     |    |     2 716 |    2 991 |     2 924 |
--------------------------------------------------------------------------------
| - Tangible assets       |      |     |    |    11 901 |   13 214 |    12 542 |
--------------------------------------------------------------------------------
| - Available-for-sale    |      |     |    |       395 |      404 |       395 |
| investments             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Deferred tax assets   |      |     |    |       348 |      356 |       487 |
--------------------------------------------------------------------------------
| Total                   |      |     |    |    15 360 |   16 964 |    16 348 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Current assets          |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Inventories           |      |     |    |     5 411 |    4 366 |     4 933 |
--------------------------------------------------------------------------------
| - Accounts receivables  | 4    |     |    |    28 756 |   20 060 |    23 184 |
| and other receivables   |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Financial assets at   |      |     |    |     2 653 |    9 554 |    10 195 |
| fair value through      |      |     |    |           |          |           |
| profit or loss          |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Cash and cash         |      |     |    |     1 926 |    5 305 |    13 812 |
| equivalents             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Total                   |      |     |    |    38 746 |   39 285 |    52 124 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| TOTAL ASSETS            | 2    |     |    |    54 107 |   56 249 |    68 472 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY    |      |     |    |           |          |           |
| AND LIABILITIES         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Shareholders' equity    |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Share capital         |      |     |    |     8 010 |    7 779 |     8 010 |
--------------------------------------------------------------------------------
| - Share premium         |      |     |    |     6 498 |    5 850 |     6 498 |
--------------------------------------------------------------------------------
| - Other funds           | 7    |     |    |       218 |      879 |      -201 |
--------------------------------------------------------------------------------
| - Retained earnings     |      |     |    |    11 824 |   10 846 |    11 370 |
--------------------------------------------------------------------------------
| - Profit for the period |      |     |    |     4 974 |    1 935 |     3 632 |
--------------------------------------------------------------------------------
| Share of shareholders'  |      |     |    |    31 524 |   27 289 |    29 309 |
| equity that belongs to  |      |     |    |           |          |           |
| owners of the parent    |      |     |    |           |          |           |
| company                 |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Minority interest       |      |     |    |         0 |        0 |         0 |
--------------------------------------------------------------------------------
| Total shareholders'     |      |     |    |    31 524 |   27 289 |    29 309 |
| equity                  |      |     |    |           |          |           |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Long-term liabilities   |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Provisions            |      |     |    |       216 |      201 |       262 |
--------------------------------------------------------------------------------
| - Deferred tax          |      |     |    |     1 006 |    1 224 |     1 084 |
| liabilities             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Long-term             |      |     |    |       317 |      318 |       317 |
| interest-bearing        |      |     |    |           |          |           |
| liabilities             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Total                   |      |     |    |     1 539 |    1 743 |     1 663 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Current liabilities     |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Provisions            |      |     |    |       958 |    1 700 |     1 726 |
--------------------------------------------------------------------------------
| - Pension obligations   |      |     |    |       279 |      347 |       335 |
--------------------------------------------------------------------------------
| - Short-term            |      |     |    |       238 |      150 |       150 |
| interest-bearing        |      |     |    |           |          |           |
| liabilities             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Advance payments      | 4    |     |    |     7 980 |   14 641 |    19 726 |
| received                |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Current tax           |      |     |    |        98 |        0 |       113 |
| liabilities             |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| - Trade and other       |      |     |    |    11 489 |   10 379 |    15 450 |
| payables                |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Total                   |      |     |    |    21 043 |   27 217 |    37 500 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| Total liabilities       |      |     |    |    22 582 |   28 960 |    39 163 |
--------------------------------------------------------------------------------
|                         |      |     |    |           |          |           |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY AND |     |    |    54 107 |   56 249 |    68 472 |
| LIABILITIES                    |     |    |           |          |           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT      |   |  1.1. - |   1.1. - |      1.1. -
| 
|                                       |  |    30.9. |    30.9. |      31.12. |
--------------------------------------------------------------------------------
|                                       |   |    2007 |     2006 |       2006
| 
--------------------------------------------------------------------------------
| CASH FLOW FROM       |        |       |  |          |          |             |
| OPERATING ACTIVITIES |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Proceeds from sales  |        |       |  |   68 128 |   82 573 |     116 046 |
--------------------------------------------------------------------------------
| Proceeds from other  |        |       |  |       75 |       85 |         155 |
| operating income     |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Payments of          |        |       |   |  -83 794 |  -76 347 |    -100 100
| 
| operating expenses   |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Cash flow before     |        |       |  |  -15 591 |    6 311 |      16 102 |
| financial items and  |        |       |  |          |          |             |
| taxes                |        |       |  |          |          |             |
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| Interests and other  |        |       |  |     -162 |      -89 |        -190 |
| operating financial  |        |       |  |          |          |             |
| expenses paid        |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Interests and other  |        |       |  |      386 |      541 |         660 |
| income received      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Dividends received   |        |       |  |      115 |       24 |          24 |
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| Income taxes paid    |        |       |  |   -1 387 |   -1 166 |      -1 614 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM (+) / USED IN (-)  |   |  -16 639 |    5 621 |      14 982
| 
| OPERATING ACTIVITIES (A)              |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
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| CASH FLOW FROM       |        |       |  |          |          |             |
| INVESTING ACTIVITIES |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Capital expenditure in        |       |  |   -1 073 |   -1 376 |      -1 809 |
| tangible and intangible       |       |  |          |          |             |
| assets                        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Purchases of         |        |       |  |        0 |      -49 |         -49 |
| available-for-sale   |        |       |  |          |          |             |
| as investments       |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Proceeds from sale of         |       |  |        0 |       81 |         292 |
| tangible and intangible       |       |  |          |          |             |
| assets                        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Proceeds from other  |        |       |  |        0 |       12 |          20 |
| investments          |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM (+) / USED IN (-)  |   |   -1 073 |   -1 332 |      -1 545
| 
| INVESTING ACTIVITIES (B)              |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| CASH FLOW FROM       |        |       |  |          |          |             |
| FINANCING ACTIVITIES |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Repayments of        |        |       |  |    1 000 |       95 |          95 |
| long-term and        |        |       |  |          |          |             |
| short-term loan      |        |       |  |          |          |             |
| receivables          |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Increase of          |        |       |  |       88 |        0 |           0 |
| short-term           |        |       |  |          |          |             |
| liabilities          |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Repayment of         |        |       |  |        0 |      -66 |         -67 |
| long-term            |        |       |  |          |          |             |
| liabilities          |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Proceeds from        |        |       |  |        0 |    1 436 |       1 436 |
| issuance of shares   |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Dividends paid       |        |       |  |   -2 803 |   -2 290 |      -2 290 |
--------------------------------------------------------------------------------
| NET CASH FROM (+) / USED IN   |       |   |   -1 715 |     -825 |        -826
| 
| (-) FINANCING ACTIVITIES (C)  |       |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| NET CHANGE IN CASH AND CASH   |       |   |  -19 427 |    3 464 |      12 611
| 
| EQUIVALENTS (A+B+C)           |       |  |          |          |             |
--------------------------------------------------------------------------------
| increase (+) /       |        |       |  |          |          |             |
| decrease (-)         |        |       |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| CASH AND CASH        |        |       |  |          |          |             |
| EQUIVALENTS*)        |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| - AT THE BEGINNING   |        |       |  |   24 006 |   11 395 |      11 395 |
| OF THE PERIOD        |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| - AT THE END OF THE  |        |       |   |    4 580 |   14 859 |      24 006
| 
| PERIOD               |        |       |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS IN THE      |  |          |          |             |
| BALANCE SHEET AT THE END OF THE       |  |          |          |             |
| PERIOD                                |  |          |          |             |
--------------------------------------------------------------------------------
|                      |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Financial assets at  |        |       |  |    2 653 |    9 554 |      10 195 |
| fair value through   |        |       |  |          |          |             |
| profit or loss       |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Cash and cash        |        |       |  |    1 926 |    5 305 |      13 812 |
| equivalents          |        |       |  |          |          |             |
--------------------------------------------------------------------------------
| Total                |        |       |   |    4 580 |   14 859 |      24 006
| 
--------------------------------------------------------------------------------
*) Cash and cash equivalents comprise trading assets as well as cash and bank   
receivables, which will be due within the following three months' period.       

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                    |
--------------------------------------------------------------------------------
|                           | Share |   Share |  Other |  Exchange |  Retained |
--------------------------------------------------------------------------------
|                           |capital| premium |  funds | rate diff.|  earnings |
|                           |       |         |        |           |           |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2007       | 8 010 |   6 498 |   -201 |       274 |    14 726 |
--------------------------------------------------------------------------------
| Exchange differences from |       |         |    376 |           |           |
| net investments           |       |         |        |           |           |
--------------------------------------------------------------------------------
| Taxes related to items    |       |         |        |           |           |
| recognized in equity or   |       |         |        |           |           |
| transferred from equity   |       |         |        |           |           |
--------------------------------------------------------------------------------
| Translation differences   |       |         |        |      -374 |           |
--------------------------------------------------------------------------------
| Other increase/decrease   |       |         |        |           |           |
--------------------------------------------------------------------------------
| Net income recognized     |     0 |       0 |    376 |      -374 |         0 |
| directly in equity        |       |         |        |           |           |
--------------------------------------------------------------------------------
| Profit for the period     |       |         |        |           |     4 974 |
--------------------------------------------------------------------------------
| Total income and expenses |     0 |       0 |    376 |      -374 |     4 974 |
| recognized in the period  |       |         |        |           |           |
--------------------------------------------------------------------------------
| Share capital increase    |       |         |        |           |           |
| (options)                 |       |         |        |           |           |
--------------------------------------------------------------------------------
| Dividend                  |       |         |        |           |    -2 803 |
--------------------------------------------------------------------------------
| Equity-settled            |       |         |        |           |           |
| share-based               |       |         |        |           |           |
--------------------------------------------------------------------------------
| transactions              |       |         |     43 |           |           |
--------------------------------------------------------------------------------
| EQUITY September 30, 2007 | 8 010 |   6 498 |    218 |      -100 |    16 897 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT  OF CHANGES IN SHAREHOLDERS' EQUITY (continue)        |
--------------------------------------------------------------------------------
|                       |To owners of|   |   Minority |     |     |     EQUITY |
--------------------------------------------------------------------------------
|                       | the parent |   |   interest |     |     |      TOTAL |
--------------------------------------------------------------------------------
|                       |    company |   |            |     |     |            |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2007   |     29 308 |   |          0 |     |     |     29 308 |
--------------------------------------------------------------------------------
| Exchange differences  |        376 |   |            |     |     |        376 |
| from net investments  |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Taxes related to      |          0 |   |            |     |     |          0 |
| items recognized in   |            |   |            |     |     |            |
| equity or transferred |            |   |            |     |     |            |
| from equity           |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Translation           |       -374 |   |            |     |     |       -374 |
| differences           |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Other                 |          0 |   |            |     |     |          0 |
| increase/decrease     |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Net income recognized |          2 |   |          0 |     |     |          2 |
| directly in equity    |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Profit for the period |      4 974 |   |            |     |     |      4 974 |
--------------------------------------------------------------------------------
| Total income and      |      4 976 |   |          0 |     |     |      4 976 |
| expenses recognized   |            |   |            |     |     |            |
| in the period         |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Share capital         |          0 |   |            |     |     |          0 |
| increase (options)    |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| Dividend              |     -2 803 |   |            |     |     |     -2 803 |
--------------------------------------------------------------------------------
| Equity-settled        |            |   |            |     |     |            |
| share-based           |            |   |            |     |     |            |
--------------------------------------------------------------------------------
| transactions          |         43 |   |            |     |     |         43 |
--------------------------------------------------------------------------------
| EQUITY  September 30, |     31 524 |   |          0 |     |     |     31 524 |
| 2007                  |            |   |            |     |     |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                    |
--------------------------------------------------------------------------------
|                          | Share |  Share |   Other |  Exchange |   Retained |
--------------------------------------------------------------------------------
|                          |capital| premium|   funds | rate diff.|   earnings |
|                          |       |        |         |           |            |
--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2006      | 7 629 |  5 429 |      14 |      -533 |     13 384 |
--------------------------------------------------------------------------------
| Exchange differences     |       |        |         |           |            |
| from net investments     |       |        |         |           |            |
--------------------------------------------------------------------------------
| Taxes related to items   |       |        |         |           |            |
| recognized in equity or  |       |        |         |           |            |
| transferred from equity  |       |        |         |           |            |
--------------------------------------------------------------------------------
| Translation differences  |       |        |         |       226 |            |
--------------------------------------------------------------------------------
| Other increase/decrease  |       |        |         |           |            |
--------------------------------------------------------------------------------
| Net income recognized    |     0 |      0 |       0 |       226 |          0 |
| directly in equity       |       |        |         |           |            |
--------------------------------------------------------------------------------
| Profit for the period    |       |        |         |           |      1 935 |
--------------------------------------------------------------------------------
| Total income and         |     0 |      0 |       0 |       226 |      1 935 |
| expenses recognized in   |       |        |         |           |            |
| the period               |       |        |         |           |            |
--------------------------------------------------------------------------------
| Share capital increase   |   150 |    421 |     865 |           |            |
| (options)                |       |        |         |           |            |
--------------------------------------------------------------------------------
| Dividend                 |       |        |         |           |     -2 290 |
--------------------------------------------------------------------------------
| Equity-settled           |       |        |         |           |            |
| share-based              |       |        |         |           |            |
--------------------------------------------------------------------------------
| transactions             |       |        |      58 |           |            |
--------------------------------------------------------------------------------
| EQUITY September 30,     | 7 779 |  5 850 |     937 |      -307 |     13 030 |
| 2006                     |       |        |         |           |            |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT  OF CHANGES IN SHAREHOLDERS' EQUITY (continue)        |
--------------------------------------------------------------------------------
|                      |       To |     |  Minority |     |        |    EQUITY |
|                      |   owners |     |           |     |        |           |
|                      |       of |     |           |     |        |           |
--------------------------------------------------------------------------------
|                      |      the |     |  interest |     |        |     TOTAL |
|                      |   parent |     |           |     |        |           |
--------------------------------------------------------------------------------
|                      |  company |     |           |     |        |           |

--------------------------------------------------------------------------------
| EQUITY Jan. 1, 2006  |   25 923 |     |       224 |     |        |    26 147 |
--------------------------------------------------------------------------------
| Exchange differences |        0 |     |           |     |        |         0 |
| from net investments |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Taxes related to     |        0 |     |           |     |        |         0 |
| items recognized in  |          |     |           |     |        |           |
| equity or            |          |     |           |     |        |           |
| transferred from     |          |     |           |     |        |           |
| equity               |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Translation          |      226 |     |           |     |        |       226 |
| differences          |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Other                |        0 |     |      -224 |     |        |      -224 |
| increase/decrease    |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Net income           |      226 |     |      -224 |     |        |         2 |
| recognized directly  |          |     |           |     |        |           |
| in equity            |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Profit for the       |    1 935 |     |           |     |        |     1 935 |
| period               |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Total income and     |    2 161 |     |      -224 |     |        |     1 937 |
| expenses recognized  |          |     |           |     |        |           |
| in the period        |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Share capital        |    1 436 |     |           |     |        |     1 436 |
| increase (options)   |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| Dividend             |   -2 290 |     |           |     |        |    -2 290 |
--------------------------------------------------------------------------------
| Equity-settled       |          |     |           |     |        |           |
| share-based          |          |     |           |     |        |           |
--------------------------------------------------------------------------------
| transactions         |       58 |     |           |     |        |        58 |
--------------------------------------------------------------------------------
| EQUITY September 30, |   27 289 |     |         0 |     |        |    27 289 |
| 2006                 |          |     |           |     |        |           |
--------------------------------------------------------------------------------

NOTES                                                                           

GENERAL INFORMATION  
                                                           
Raute Corporation's Board of Directors has on 24 October 2007  reviewed the     
Group's Interim financial statements for January 1 - September 30, 2007, and    
decided to publish Raute Corporation's Interim financial reporting for January 1
- September 30, 2007, in compliance with this release.                          

1. Accounting Principles                                                        

Raute Corporation's Interim financial reporting has been drawn up in compliance 
with IAS 34. 
                                                                   
Raute Group's Interim financial statements for January 1 - September 30, 2007,  
included in the Interim financial reporting do not contain full notes and other 
information presented in the financial statements. Therefore, the Interim       
financial reporting should be read in conjunction with the Financial statements 
published for 2006. 
                                                            
The figures presented in the Interim financial reporting have not been audited. 
Figures in parentheses refer to the corresponding figures in the comparison     
year. All the monetary figures presented in this interim report are in thousands
euros, unless otherwise stated. Due to the roundings of the figures in the      
interim financial statement tables, the sums of figures may deviate from the sum
total presented in the table.                                                   

The preparation of interim financial statements according to IFRS requires      
management to use estimates and assumptions that affect the assets and          
liabilities on the balance sheet date, as well as the income and expenses for   
the financial period. Because the forward-looking estimates and assumptions are 
based on management's best knowledge at the interim time, they comprise risks   
and uncertainties. The actual results may differ from these estimates.          

On January 1, 2007, the Group adopted the following standards and               
interpretations issued by IASB:                                                 
- IFRIC 8: Scope of IFRS 2,                                                     
- IFRIC 9: Reassessment of Embedded Derivatives,
- IFRIC 10: Interim Financial Reporting and Impairment,
- IFRS 7 Financial Instruments: Disclosures, and                                
- IAS 1 Amendment to disclosures about capital in financial statements.
The adoption of the standards has not had any material impact on the figures in
the Interim financial statements. In other respects, the Group has followed the
accounting principles described in the Financial statements for 2006. 

2. Segment information                                                          

Primary reporting segment                                                       

Raute's primary reporting segment is the business segment. Continuing operations
belong to the wood products technology segment.                                 

Secondary reporting segment                                                     

The secondary reporting segment is geographical. The geographical segment       
consists of market areas accounting for over 10%  of the Group's net sales.     

Geographical reporting segment information                                      

--------------------------------------------------------------------------------
| Net sales to external | 1.1. - |        |  1.1. - |       |     1.1. - |     |
| clients by            |  30.9. |        |   30.9. |       |     31.12. |     |
--------------------------------------------------------------------------------
| clients' geographical |   2007 |      % |    2006 |     % |       2006 |   % |
| location              |        |        |         |       |            |     |
--------------------------------------------------------------------------------
| Russia                | 32 508 |     38 |   9 273 |    13 |     12 470 |  12 |
--------------------------------------------------------------------------------
| Europe                | 22 181 |     26 |  20 166 |    27 |     30 620 |  29 |
--------------------------------------------------------------------------------
| North America         | 20 373 |     24 |  12 448 |    17 |     17 107 |  16 |
--------------------------------------------------------------------------------
| South America         |  7 787 |      9 |  25 881 |    35 |     39 160 |  37 |
--------------------------------------------------------------------------------
| Others                |  2 267 |      3 |   5 943 |     8 |      6 849 |   6 |
--------------------------------------------------------------------------------
| TOTAL                 | 85 116 |    100 |  73 711 |   100 |    106 206 | 100 |
--------------------------------------------------------------------------------
|                       |        |        |         |       |            |     |
--------------------------------------------------------------------------------
| Assets by             |        |        |         |       |            |     |
| geographical location |        |        |         |       |            |     |
--------------------------------------------------------------------------------
| Russia                |    439 |      1 |     287 |     1 |        190 |   0 |
--------------------------------------------------------------------------------
| Europe                | 46 237 |     85 |  49 682 |    88 |     63 832 |  94 |
--------------------------------------------------------------------------------
| North America         |  6 164 |     11 |   6 082 |    11 |      4 158 |   6 |
--------------------------------------------------------------------------------
| South America         |     47 |      0 |      50 |     0 |         38 |   0 |
--------------------------------------------------------------------------------
| Others                |  1 220 |      2 |     148 |     0 |        254 |   0 |
--------------------------------------------------------------------------------
| TOTAL                 | 54 107 |    100 |  56 249 |   100 |     68 472 | 100 |
--------------------------------------------------------------------------------
|                       |        |        |         |       |            |     |
--------------------------------------------------------------------------------
| Capital expenditure   |        |        |         |       |            |     |
| by geographical       |        |        |         |       |            |     |
| location              |        |        |         |       |            |     |
--------------------------------------------------------------------------------
| Russia                |      0 |      0 |       0 |     0 |          0 |   0 |
--------------------------------------------------------------------------------
| Europe                |    712 |     66 |   1 347 |    98 |      1 801 |  97 |
--------------------------------------------------------------------------------
| North America         |     75 |      7 |      26 |     2 |         51 |   3 |
--------------------------------------------------------------------------------
| South America         |      0 |      0 |       0 |     0 |          0 |   0 |
--------------------------------------------------------------------------------
| Others                |    286 |     27 |       0 |     0 |          0 |   0 |
--------------------------------------------------------------------------------
| TOTAL                 |  1 073 |    100 |   1 373 |   100 |      1 852 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from      |        |        |         |       |            |     |
| sales                 |        |        |         |       |            |     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales             | 1.1. - |        |  1.1. - |       |     1.1. - |     |
|                       |  30.9. |        |   30.9. |       |     31.12. |     |
--------------------------------------------------------------------------------
| by market area        |   2007 |      % |    2006 |     % |       2006 |   % |
--------------------------------------------------------------------------------
| Russia                | 32 508 |     38 |   9 273 |    13 |     12 470 |  12 |
--------------------------------------------------------------------------------
| North America         | 20 373 |     24 |  12 448 |    17 |     17 107 |  16 |
--------------------------------------------------------------------------------
| Rest of Europe        | 13 924 |     16 |  13 146 |    18 |     20 203 |  19 |
--------------------------------------------------------------------------------
| Finland               |  8 257 |     10 |   7 019 |    10 |     10 417 |  10 |
--------------------------------------------------------------------------------
| South America         |  7 787 |      9 |  25 881 |    35 |     39 160 |  37 |
--------------------------------------------------------------------------------
| Asia                  |    885 |      1 |   5 086 |     7 |      5 593 |   5 |
--------------------------------------------------------------------------------
| Oceania               |    597 |      1 |     409 |     0 |        501 |   0 |
--------------------------------------------------------------------------------
| Others                |    785 |      1 |     449 |     0 |        755 |   1 |
--------------------------------------------------------------------------------
| TOTAL                 | 85 116 |    100 |  73 711 |   100 |    106 206 | 100 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 4. Long-term projects |        |        |   |      30.9. |   30.9. |  31.12. |
--------------------------------------------------------------------------------
|                       |        |        |   |       2007 |    2006 |    2006 |
--------------------------------------------------------------------------------
|                       |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Net sales             |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Net sales by          |        |        |   |     73 398 |  61 453 |  90 464 |
| percentage of         |        |        |   |            |         |         |
| completion            |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Other net sales       |        |        |   |     11 718 |  12 258 |  15 742 |
--------------------------------------------------------------------------------
| TOTAL                 |        |        |   |     85 116 |  73 711 | 106 206 |
--------------------------------------------------------------------------------
|                       |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Project revenues      |        |        |   |    109 120 |  73 000 |  77 607 |
| entered as income     |        |        |   |            |         |         |
| from currently        |        |        |   |            |         |         |
| undelivered long-term |        |        |   |            |         |         |
| projects recognized   |        |        |   |            |         |         |
| by percentage of      |        |        |   |            |         |         |
| completion            |        |        |   |            |         |         |
--------------------------------------------------------------------------------
|                       |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Amount of long-term   |        |        |   |     40 718 |  63 953 |  74 281 |
| projects revenues not |        |        |   |            |         |         |
| yet entered as income |        |        |   |            |         |         |
--------------------------------------------------------------------------------
|                       |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Specification of      |        |        |   |            |         |         |
| combined asset and    |        |        |   |            |         |         |
| liability items:      |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Accrued income        |        |        |   |    110 024 |  72 972 |  76 989 |
| corresponding to      |        |        |   |            |         |         |
| revenues by           |        |        |   |            |         |         |
| percentage of         |        |        |   |            |         |         |
| completion            |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Advances received     |        |        |   |    -87 280 | -61 636 | -62 588 |
| from project          |        |        |   |            |         |         |
| customers             |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Project receivables included   |        |   |     22 744 |  11 336 |  14 401 |
| in short-term receivables      |        |   |            |         |         |
--------------------------------------------------------------------------------
|                       |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Advance payments      |        |        |   |      7 980 |  14 641 |  19 726 |
| received at Balance   |        |        |   |            |         |         |
| Sheet                 |        |        |   |            |         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of          |        |        |   |      30.9. |   30.9. |  31.12. |
| personnel             |        |        |   |            |         |         |
--------------------------------------------------------------------------------
|                       |        |        |   |       2007 |    2006 |    2006 |
--------------------------------------------------------------------------------
| - effective, on       |        |        |   |        570 |     539 |     546 |
| average               |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| - in books, on        |        |        |   |        576 |     539 |     547 |
| average               |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| - in books, at the    |        |        |   |        572 |     534 |     540 |
| end of period         |        |        |   |            |         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. Research and       |        |        |   |      30.9. |   30.9. |  31.12. |
| development costs     |        |        |   |            |         |         |
--------------------------------------------------------------------------------
|                       |        |        |   |       2007 |    2006 |    2006 |
--------------------------------------------------------------------------------
| Research and          |        |        |   |      3 137 |   2 740 |   3 765 |
| development costs on  |        |        |   |            |         |         |
| the period            |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Depreciation of       |        |        |   |        275 |     132 |     228 |
| capitalized           |        |        |   |            |         |         |
| development costs     |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Recognized as assets  |        |        |   |       -191 |    -449 |    -538 |
| in balance sheet      |        |        |   |            |         |         |
--------------------------------------------------------------------------------
| Research and          |        |        |   |      3 221 |   2 423 |   3 455 |
| development costs     |        |        |   |            |         |         |
| entered as expenses   |        |        |   |            |         |         |
| for the period        |        |        |   |            |         |         |
--------------------------------------------------------------------------------

7. Share-based payments	 	 	 	 	  	 	 	  
The effect of the share-based remunerations to the profit of Raute Group was    
EUR 81 thousand. At the end of the reporting period the current value of the    
cash portion was EUR 13.20 per share. The value of share-based remunerations was
EUR 0.3 million total.                                                          

--------------------------------------------------------------------------------
| 8. Off- balance sheet |        |        |        |  30.9. |  30.9. |  31.12. |
| commitments           |        |        |        |        |        |         |
--------------------------------------------------------------------------------
|                       |        |        |        |   2007 |   2006 |    2006 |
--------------------------------------------------------------------------------
| Security of own debts |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - mortgages           |        |        |        | 11 059 | 11 134 |  11 134 |
--------------------------------------------------------------------------------
| Security for Group's  |        |        |        |        |        |         |
| liabilities           |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - bank guarantees     |        |        |        | 17 150 | 16 872 |  14 116 |
--------------------------------------------------------------------------------
| Other own liabilities |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Leasing and rent      |        |        |        |        |        |         |
| liabilities           |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - for the current     |        |        |        |     73 |     72 |     218 |
| accounting period     |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - for subsequent      |        |        |        |    541 |    154 |     527 |
| accounting periods    |        |        |        |        |        |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
No loans or pledges have been given or other commitments made on behalf of the  
company's management, shareholders or associated companies.                     

--------------------------------------------------------------------------------
| 9. Currency           |        |        |        |  30.9. |  30.9. |  31.12. |
| derivatives           |        |        |        |        |        |         |
--------------------------------------------------------------------------------
|                       |        |        |        |   2007 |   2006 |    2006 |
--------------------------------------------------------------------------------
| Currency derivatives  |        |        |        |        |        |         |
| are used for currency |        |        |        |        |        |         |
| hedging purposes.     |        |        |        |        |        |         |
--------------------------------------------------------------------------------
|                       |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Nominal values of     |        |        |        |        |        |         |
| forward contracts in  |        |        |        |        |        |         |
| foreign currency      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Economic hedging      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to          |        |        |        |  3 650 |  2 232 |   2 065 |
| financing             |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to hedging  |        |        |        |  6 568 |  2 076 |     174 |
| of net sales          |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Hedge accounting      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to the      |        |        |        |      0 | 13 596 |   7 000 |
| hedging of net sales  |        |        |        |        |        |         |
--------------------------------------------------------------------------------
|                       |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Fair values of        |        |        |        |        |        |         |
| forward contracts in  |        |        |        |        |        |         |
| foreign currency      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Economic hedging      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to          |        |        |        |     -4 |     -2 |       2 |
| financing             |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to the      |        |        |        |    346 |     -3 |      -8 |
| hedging of net sales  |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Hedge accounting      |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - related to the      |        |        |        |      0 |    -91 |     -50 |
| hedging of net sales  |        |        |        |        |        |         |
--------------------------------------------------------------------------------
|                       |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| Purchased currency    |        |        |        |        |        |         |
| options               |        |        |        |        |        |         |
--------------------------------------------------------------------------------
| - nominal values      |        |        |        |      0 |      0 |   1 963 |
--------------------------------------------------------------------------------
| - fair values         |        |        |        |      0 |      0 |      13 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| GROUP KEY RATIOS      |        |        |   |           |         |          |
--------------------------------------------------------------------------------
|                       |        |        |   |    1.1. - |  1.1. - |   1.1. - |
|                       |        |        |   |     30.9. |   30.9. |   31.12. |
--------------------------------------------------------------------------------
|                       |        |        |   |      2007 |    2006 |     2006 |
--------------------------------------------------------------------------------
| Return on investment  |        |        |   |    28,7 % |  13,5 % |   18,6 % |
| , ROI                 |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Return on equity ,    |        |        |   |    21,8 % |   9,7 % |   13,1 % |
| ROE                   |        |        |   |           |         |          |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Quick ratio           |        |        |   |       2,6 |     3,2 |      2,7 |
--------------------------------------------------------------------------------
| Gearing               |        |        |   |   -12,8 % | -52,7 % |  -80,3 % |
--------------------------------------------------------------------------------
| Equity ratio          |        |        |   |    68,3 % |  65,6 % |   60,1 % |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Order book, EUR       |        |        |   |        44 |      69 |       77 |
| million               |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Order intake, EUR     |        |        |   |        48 |      89 |      132 |
| million               |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Exported portion of   |        |        |   |    90,3 % |  90,5 % |   90,2 % |
| net sales             |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Change in net sales   |        |        |   |    15,5 % |  -4,4 % |   -2,2 % |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Gross capital         |        |        |   |       1,1 |     1,4 |      1,9 |
| expenditure, EUR      |        |        |   |           |         |          |
| million               |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Gross capital         |        |        |   |     1,3 % |   1,9 % |    1,7 % |
| expenditure of net    |        |        |   |           |         |          |
| sales                 |        |        |   |           |         |          |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Research and          |        |        |   |       3,1 |     2,7 |      3,8 |
| development, EUR      |        |        |   |           |         |          |
| million               |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Research and          |        |        |   |     3,7 % |   3,7 % |    3,5 % |
| development of net    |        |        |   |           |         |          |
| sales                 |        |        |   |           |         |          |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Earnings per share    |        |        |   |           |         |          |
| (EPS), EUR            |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| - basic               |        |        |   |      1,24 |    0,50 |     0,94 |
--------------------------------------------------------------------------------
| - diluted             |        |        |   |      1,24 |    0,49 |     0,94 |
--------------------------------------------------------------------------------
| Equity to share, EUR  |        |        |   |      7,87 |    7,02 |     7,32 |
--------------------------------------------------------------------------------
| Dividend per share    |        |        |   |           |         |     0,70 |
| series K shares, EUR  |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Dividend per share    |        |        |   |           |         |     0,70 |
| series A shares, EUR  |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Dividend per profit   |        |        |   |           |         |   74,5 % |
--------------------------------------------------------------------------------
| Effective dividend    |        |        |   |           |         |    5,5 % |
| return                |        |        |   |           |         |          |
--------------------------------------------------------------------------------
|                       |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Share price at the    |        |        |   |     13,20 |   12,90 |    12,85 |
| end of period, EUR    |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| Number of shares      |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| - weighted average, 1 |        |        |   |     4 005 |   3 834 |    3 867 |
| 000 pcs               |        |        |   |           |         |          |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs  |        |        |   |     4 005 |   3 957 |    3 867 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The formulas used to calculate key ratios are described on page 60 of the Annual
Report 2006.                                                                    

--------------------------------------------------------------------------------
| THE DEVELOPMENT OF QUARTERLY RESULTS                                         |
--------------------------------------------------------------------------------
|                     |    Q 3 |    Q 2 |    Q 1 |    Q 4 | Rolling |  Rolling |
--------------------------------------------------------------------------------
|                     |   2007 |   2007 |   2007 |   2006 |1.10.2006|1.10.2005 |
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |       - |        - |
--------------------------------------------------------------------------------
|                     |        |        |        |        |30.9.2007| 30.9.2006|
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| NET SALES           | 26 466 | 29 769 | 28 882 | 32 494 | 117 610 |  105 215 |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Other operating     |     17 |     19 |     38 |     72 |     147 |      216 |
| income              |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Increase (+) or     |    103 |    -54 |    246 |    -13 |     282 |   -1 166 |
| decrease (-) in     |        |        |        |        |         |          |
| inventories of      |        |        |        |        |         |          |
| finished goods and  |        |        |        |        |         |          |
| work in progress    |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Materials and       | 14 653 | 17 439 | 16 997 | 19 490 |  68 579 |   61 179 |
| services            |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Expenses from       |  6 397 |  7 369 |  7 007 |  7 097 |  27 869 |   25 749 |
| employee benefits   |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Depreciation,       |    684 |    663 |    653 |    871 |   2 871 |    2 503 |
| amortization and    |        |        |        |        |         |          |
| impairment charges  |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Other operating     |  2 412 |  2 427 |  2 618 |  2 796 |  10 253 |   11 925 |
| expenses            |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Total operating     | 24 146 | 27 898 | 27 276 | 30 254 | 109 573 |  101 355 |
| expenses            |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| OPERATING PROFIT    |  2 440 |  1 836 |  1 891 |  2 299 |   8 465 |    2 909 |
--------------------------------------------------------------------------------
| % of net sales      |    9 % |    6 % |    7 % |    7 % |     7 % |      3 % |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Financial income    |     -1 |    191 |    312 |    199 |     700 |      799 |
--------------------------------------------------------------------------------
| Financial expenses  |    -57 |    -53 |    -51 |    -85 |    -247 |     -284 |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX   |  2 382 |  1 973 |  2 151 |  2 412 |   8 918 |    3 424 |
--------------------------------------------------------------------------------
| % of net sales      |    9 % |    7 % |    7 % |    7 % |     8 % |      3 % |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Income taxes        |   -536 |   -478 |   -517 |   -717 |  -2 248 |     -571 |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| PROFIT FOR THE      |  1 845 |  1 495 |  1 634 |  1 696 |   6 670 |    2 853 |
| PERIOD              |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| % of net sales      |    7 % |    5 % |    6 % |    5 % |     6 % |      3 % |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Breakdown           |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Minority interest   |      0 |      0 |      0 |      0 |       0 |        3 |
--------------------------------------------------------------------------------
| Share of profit     |  1 845 |  1 495 |  1 634 |  1 696 |   6 670 |    2 850 |
| that belongs to     |        |        |        |        |         |          |
| owners of the       |        |        |        |        |         |          |
| parent company      |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Earnings per share, |        |        |        |        |         |          |
| EUR                 |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Undiluted earnings  |   0,46 |   0,37 |   0,41 |   0,44 |         |          |
| per share           |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Diluted earnings    |   0,46 |   0,37 |   0,41 |   0,44 |         |          |
| per share           |        |        |        |        |         |          |
--------------------------------------------------------------------------------
|                     |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Shares (1 000 pcs)  |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Adjusted average    |  4 005 |  4 005 |  4 005 |  3 867 |         |          |
| number of shares    |        |        |        |        |         |          |
--------------------------------------------------------------------------------
| Adjusted average    |  4 005 |  4 005 |  4 005 |  3 867 |         |          |
| number of shares,   |        |        |        |        |         |          |
| diluted             |        |        |        |        |         |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| THE LARGEST SHAREHOLDERS 30, September 2007                                  |
--------------------------------------------------------------------------------
|                             |   |   Number |   |  Number of |     |     Total
| 
|                             |  |       of |   |   A-shares |     | number of |
|                             |  | K-shares |   |    (1 vote |     |    shares |
|                             |  |      (20 |   | per share) |     |           |
|                             |  |    votes |   |            |     |           |
|                             |  |      per |   |            |     |           |
|                             |  |   share) |   |            |     |           |
--------------------------------------------------------------------------------
| 1.  Sundholm Göran          |  |          |   |    515 000 |     |   515 000 |
--------------------------------------------------------------------------------
| 2.  Hietala Pekka Tapani    |  |          |   |    181 900 |     |   181 900 |
--------------------------------------------------------------------------------
| 3.  Suominen Jussi Matias   |  |   48 000 |   |     74 759 |     |   122 759 |
--------------------------------------------------------------------------------
| 4.  Suominen Tiina          |  |   48 000 |   |     74 759 |     |   122 759 |
| Sini-Maria                  |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| 5.  Mustakallio Kari Pauli  |  |   60 480 |   |     60 009 |     |   120 489 |
--------------------------------------------------------------------------------
| 6.  Kirmo Kaisa Marketta    |  |   50 280 |   |     65 092 |     |   115 372 |
--------------------------------------------------------------------------------
| 7.  Suominen Pekka Matias   |  |   48 000 |   |     64 159 |     |   112 159 |
--------------------------------------------------------------------------------
| 8.  Siivonen Osku Pekka     |  |   50 640 |   |     53 539 |     |   104 179 |
--------------------------------------------------------------------------------
| 9.  Keskiaho Kaija Leena    |  |   33 600 |   |     51 116 |     |    84 716 |
--------------------------------------------------------------------------------
| 10. Särkijärvi Riitta       |  |   60 480 |   |     22 009 |     |    82 489 |
--------------------------------------------------------------------------------
| 11. Mustakallio Mika        |  |   39 750 |   |     42 670 |     |    82 420 |
--------------------------------------------------------------------------------
| 12. Mustakallio Risto       |  |   42 240 |   |     35 862 |     |    78 102 |
--------------------------------------------------------------------------------
| 13. Mustakallio Ulla        |  |   47 240 |   |     30 862 |     |    78 102 |
| Sinikka                     |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| 14. Sr Arvo Finland Value   |  |          |   |     64 358 |     |    64 358 |
--------------------------------------------------------------------------------
| 15. Mustakallio Marja       |  |   42 240 |   |     20 662 |     |    62 902 |
| Helena                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| 16. Mustakallio Kai Henrik  |  |   47 240 |   |     12 000 |     |    59 240 |
--------------------------------------------------------------------------------
| 17. Sr Eq Suomi Pienyhtiöt  |  |          |   |     56 531 |     |    56 531 |
--------------------------------------------------------------------------------
| 18. Kirmo Lasse Antti       |  |   30 000 |   |     26 200 |     |    56 200 |
--------------------------------------------------------------------------------
| 19. Särkijärvi Timo Juha    |  |   12 000 |   |     43 256 |     |    55 256 |
--------------------------------------------------------------------------------
| 20. Särkijärvi-Martinez Anu |  |   12 000 |   |     43 256 |     |    55 256 |
| Riitta                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| TOTAL                       |   |  672 190 |   |  1 537 999 |     | 2 210 189
| 
--------------------------------------------------------------------------------
| Share of total amount of    |  |   67,8 % |   |     51,0 % |     |    55,2 % |
| shares                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| Share of total voting       |   |   67,8 % |   |     51,0 % |     |    65,6 %
| 
| rights                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Administrative registered   |  |          |   |    113 571 |     |   113 571 |
--------------------------------------------------------------------------------
| OTHER SHAREHOLDERS          |   |  318 971 |   |  1 362 027 |     | 1 680 998
| 
--------------------------------------------------------------------------------
| TOTAL                       |   |  991 161 |   |  3 013 597 |     | 4 004 758
| 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MANAGEMENT'S SHAREHOLDING   |   |   98 990 |   |     89 788 |     |   188 778
| 
--------------------------------------------------------------------------------
| Share of total amount of    |   |   10,0 % |   |      3,0 % |     |     4,7 %
| 
| shares                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------
| Share of total voting       |   |   10,0 % |   |      3,0 % |     |     9,1 %
| 
| rights                      |  |          |   |            |     |           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| SHARE INFORMATION      |      |    |             |            |              |
--------------------------------------------------------------------------------
|                        |      |    |       30.9. |      30.9. |       31.12. |
--------------------------------------------------------------------------------
|                        |      |    |        2007 |       2006 |         2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares       |      |    |             |            |              |
--------------------------------------------------------------------------------
| - Series K , ordinary  |      |    |     991 161 |    991 161 |      991 161 |
| shares (20 votes /     |      |    |             |            |              |
| share)                 |      |    |             |            |              |
--------------------------------------------------------------------------------
| - Series A , 1         |      |    |   3 013 597 |  2 898 297 |    3 013 597 |
| vote/share             |      |    |             |            |              |
--------------------------------------------------------------------------------
| Number of shares total |      |    |   4 004 758 |  3 889 458 |    4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading of series A    |      |    |             |            |              |
| shares                 |      |    |             |            |              |
--------------------------------------------------------------------------------
| Trading of shares, pcs |      |    |     805 203 |    676 432 |    1 088 288 |
--------------------------------------------------------------------------------
| Trading of shares, EUR |      |    |        11,3 |       10,1 |         15,4 |
| million                |      |    |             |            |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange rate of       |      |    |             |            |              |
| series A shares        |      |    |             |            |              |
--------------------------------------------------------------------------------
| At the end of report   |      |    |       13,20 |      12,90 |        12,85 |
| period, EUR            |      |    |             |            |              |
--------------------------------------------------------------------------------
| Highest price during   |      |    |       15,45 |      17,60 |        17,60 |
| the report period, EUR |      |    |             |            |              |
--------------------------------------------------------------------------------
| Lowest price during    |      |    |       12,40 |      11,60 |        11,60 |
| the report period, EUR |      |    |             |            |              |
--------------------------------------------------------------------------------
| Average price during   |      |    |       13,88 |      14,90 |        14,03 |
| the report period, EUR |      |    |             |            |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market value of        |      |    |             |            |              |
| capital stock          |      |    |             |            |              |
--------------------------------------------------------------------------------
| (Series K shares       |      |    |             |            |              |
| valued at the value of |      |    |             |            |              |
| series A shares at the |      |    |             |            |              |
| end of reporting       |      |    |             |            |              |
| period.                |      |    |             |            |              |
--------------------------------------------------------------------------------
| - Series K shares, EUR |      |    |        13,1 |       12,8 |         12,7 |
| million                |      |    |             |            |              |
--------------------------------------------------------------------------------
| - Series A shares, EUR |      |    |        39,8 |       37,4 |         38,7 |
| million                |      |    |             |            |              |
--------------------------------------------------------------------------------
| Total, EUR million     |      |    |        52,9 |       50,2 |         51,5 |
--------------------------------------------------------------------------------

                                                                                
RAUTE CORPORATION                                                               

Board of Directors                                                              


FURTHER INFORMATION:                                                            
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560,  
mobile +358 400 814 148                                                         
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293,
mobile +358 400 710 387 

RAUTE IN BRIEF:                                                                 
Raute is a technology company serving the wood products industry worldwide. Its 
most important customers are the plywood and LVL industries. The company is the 
world market leader as a supplier of mill-scale projects to these customer      
industries. The full-service concept also includes technology services, with    
which Raute supports its customers throughout the entire life cycle of their    
investment. Raute's head office and main production plant are in Nastola,       
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Iyväskylä and Kajaani, Finland. Net sales in 2006
were EUR 106 million and the number of personnel 540. More information on the   
company can be found at www.raute.com.                                          

DISTRIBUTION:                                                                   
OMX Nordic Exchange Helsinki, main media, www.raute.com

2007q3_en.pdf