Ruukki Group Oyj - Company Announcement

RUUKKI GROUP TO SELL LAPPIPANELI OY'S SAWMILL BUSINESS TO PÖLKKY OY

Ruukki Group Plc, Stock Exchange Release, 26 October 2009 at 14:30 p.m.         

RUUKKI GROUP TO SELL LAPPIPANELI OY'S SAWMILL BUSINESS TO PÖLKKY OY             

Ruukki Group Plc announces that its subsidiary Lappipaneli Oy has signed a      
preliminary agreement with the Finnish company Pölkky Oy concerning the transfer
of Lappipaneli's assets to Pölkky's ownership. The transaction, expected to be  
completed in November 2009, is subject to a final agreement and satisfactory due
diligence.                                                                      

The final sales consideration will be determined following due diligence. The   
transaction is estimated to have an approximately EUR 2.0 million positive      
impact on Ruukki Group's consolidated income statement.                         

Lappipaneli employs over 30 persons and is located in Kuusamo, Finland. The     
company's 2008 revenue was slightly over EUR 38 million. The sale of Lappipaneli
is regarded as important to Ruukki Group's strategy to create an independent    
wood processing business.                                                       
Thomas Hoyer, CEO of Ruukki Yhtiöt Oy, subsidiary of Ruukki's Wood Processing   
business, commented:                                                            

“We are pleased to have entered into an agreement with Pölkky. Even though      
Lappipaneli is an efficient sawmill, the move to sell its assets is important   
and strategic for Ruukki's Wood Processing business, as we look to consolidate  
our portfolio of wood assets to position the segment for growth. Synergies      
between Lappipaneli and other Ruukki Group subsidiaries have been limited due to
Lappipaneli's location in north-eastern Finland and its specialisation in the   
Japanese markets. Ruukki will look to increase its focus on sawn goods for wood 
construction and the wooden house building industry, particularly in the        
European markets,”                                                              

Alwyn Smit, CEO of Ruukki Group Plc, said:                                      

“Looking forward, the intention for our Wood Processing business is to          
capitalise on growth opportunities within the industry. For this reason we will 
be looking for targets that demonstrate clear and tangible synergies with our   
existing business as we aim to create an independent business well placed to    
create value for our shareholders. I am pleased with the steps that the new     
management at Ruukki Yhtiöt Oy have taken to streamline the wood processing     
business and am confident in their ability to deliver growth for the segment.   
This transaction is a step towards listing Ruukki's Wood Processing business on 
the Helsinki Stock Exchange as an independent company.”                         

Ruukki Group Plc                                                                

Alwyn Smit                                                                      
Chief Executive Officer                                                         

Ruukki Group is an industrial group focusing minerals and wood processing       
businesses. Ruukki Group Plc's shares are listed on NASDAQ OMX Helsinki and     
traded in the mid cap segment, in the industrials sector.                       

For additional information, please contact:                                     
Thomas Hoyer                                                                    
Chief Executive Officer                                                         
Ruukki Yhtiöt Oy                                                                
Telephone +358 45 670 0491                                                      
www.ruukkigroup.fi                                                              

This stock exchange release is based on a translation into English of a document
written in Finnish. In case of any discrepancies, inconsistencies or            
inaccuracies, the Finnish version of the release shall prevail.