2007-08-01 08:00:01 CEST

2007-08-01 08:00:01 CEST


REGULATED INFORMATION

English Finnish
Rautaruukki - Quarterly report

RAUTARUUKKI CORPORATION INTERIM REPORT JANUARY-JUNE 2007


Rautaruukki Oyj 	Stock Exchange Release  1 August 2007 at 9am                   

RAUTARUUKKI CORPORATION INTERIM REPORT JANUARY-JUNE 2007                        


The good market in the Group's core market areas and main customer industries   
has been maintained throughout the first half of the year. There was continued  
brisk construction activity in the Nordic countries, the Baltics, Central       
Eastern Europe and Russia. The order books of engineering customers, especially 
those in the lifting, handling and transportation equipment industry and energy 
industry are still strong and this has had a positive effect also on            
Rautaruukki's deliveries. Likewise, demand for standard and special steel       
products has continued at the good level in Northern Europe throughout the      
report period.                                                                  


Net sales and result for January-June 2007 (comparable figures for Jan-June     
2006)                                                                           

The Group's net sales in January-June 2007 increased by 10 per cent to EUR 1,960
million (1,784). The increase in net sales was 20 per cent on comparable net    
sales of EUR 1,634 million for January-June 2006. The comparable figures exclude
the Nordic Reinforcing units, which were part of the Group until 31 July 2006.  
Ruukki Construction's net sales grew by 50 per cent to EUR 471 million (315).   
Ruukki Engineering's net sales were EUR 330 million (274) and Ruukki Metals' EUR
1,159 million (1,195).                                                          

The solutions businesses - Ruukki Construction and Ruukki Engineering -         
accounted for 41 per cent (33) of net sales during the report period. Of net    
sales, 82 per cent (79) came from Rautaruukki's core market areas: 31 per cent  
(32) from Finland, 32 per cent (34) from the other Nordic countries and 19 per  
cent (13) from Central Eastern Europe, Russia and Ukraine. The rest of Europe   
accounted for 16 per cent (19) of net sales and other countries for 2 per cent  
(2).                                                                            

Operating profit for the report period was EUR 356 million (222), which is 18   
per cent (12) of net sales and EUR 148 million more than the comparable         
operating profit of EUR 208 million reported last year. The solutions businesses
accounted for 37 per cent (34) of the Group's operating profit. Ruukki          
Construction's operating profit rose to EUR 73 million (29), Ruukki             
Engineering's to EUR 58 million (46) and Ruukki Metals' to EUR 236 million      
(164).                                                                          

Net finance expense amounted to EUR 6 million (13). A marked decrease in net    
indebtedness caused the net interest expense to decrease from EUR 10 million    
last year to EUR 4 million.                                                     

The share of associates' profits was EUR 3 million (29, of which Ovako accounted
for EUR 26 million).                                                            

Profit before taxes was EUR 353 million (237).                                  

Group taxes were EUR 91 million (53), including a decrease in deferred taxes of 
EUR 11 million (an increase of 2). The effective tax rate was 26 per cent (24). 

Profit for the report period was EUR 262 million (184).                         

Diluted earnings per share were EUR 1.89 (1.33).                                

The return on capital employed over the past 12 months was 36.3 per cent (24.1) 
and the return on equity was 34.9 per cent (25.5). Excluding the impact of the  
capital gain arising from the divestment of Ovako, the return on capital        
employed was 31.6 per cent and the return on equity was 28.9 per cent over the  
same period.                                                                    



Balance sheet                                                                   

The consolidated balance sheet total increased by EUR 40 million compared to 30 
June 2006. Since year-end 2006, the balance sheet total has decreased by EUR 77 
million to EUR 2,948 million.                                                   

Shareholders' equity at 30 June 2007 was EUR 1,801 million (1,519) and net      
interest-bearing liabilities were EUR 233 million (538).                        


Cash flow and financing                                                         

Cash flow from operating activities was EUR 163 million (139) and cash flow     
after investing activities was EUR 69 million (18).                             

Net interest-bearing liabilities at 30 June 2007 were EUR 233 million (538),    
compared to EUR 22 million at year-end 2006. Working capital increased by EUR   
153 million (18) during January-June 2007. EUR 37 million of this increase was  
attributable to a rise in trade and other receivables and the remainder to      
inventories.                                                                    

The equity ratio was 62.6 per cent (53.2) and net gearing 12.9 per cent (35.4). 
At 30 June 2007, the Group had liquid assets of EUR 116 million and a total of  
EUR 300 million unused revolving credit facilities with banks. At 30 June 2007, 
shareholders' equity stood at EUR 1,801 million (1,519), or EUR 13.00 per share 
(11.12). In April, Rautaruukki paid to its shareholders EUR 207 million in      
dividends and an additional dividend of EUR 69 million out of the capital gain  
arising from the divestment of Ovako.                                           


Personnel                                                                       

During the first six months of 2007, the Group employed an average of 14,607    
people (12,645). At 30 June 2007, the headcount was 15,297 (14,952), an increase
of 345 persons compared to the end of June 2006.                                


Structural changes                                                              

To strengthen its expertise in the manufacture and installation of bridge       
structures, Rautaruukki acquired the entire share capital of Norwegian steel    
bridge supplier Scanbridge AS for a debt-free purchase price of around EUR 6    
million. The acquisition was completed on 2 April 2007 and Scanbridge has been  
accounted for in Rautaruukki's consolidated financial statements as of 1 April  
2007. Scanbridge had net sales of some EUR 9 million in 2006 and employs 75     
persons.                                                                        

In May, Rautaruukki moved further ahead with the implementation of its growth   
strategy in the lifting, handling and transportation equipment customer segment 
by acquiring an 80.7 per cent share in Hungarian company Aprítógépgyár Zrt.     
(AGJ). The transaction was closed on 29 May 2007 and AGJ has been accounted for 
in Rautaruukki's consolidated financial statements as of 1 June 2007.           
Acquisition of AGJ brings the company new customers and business potential, and 
adds to its manufacturing network in Central Eastern Europe. AGJ had net sales  
of some EUR 43 million in 2006 and employs around 740 persons.                  

Further progress was made with simplifying the Group's legal structure. The     
merger of TOP-Teräs Oy, Rautaruukki International Oy and Kiinteistö OY          
Pakilantie 61-63 with the parent company was entered in the Finnish Trade       
Register on 4 June 2007. In addition, the merger of Teräsportti Oy is pending   
and is expected to be completed by 1 November 2007.                             


Capital expenditure                                                             

Cash flow from investing activities during the report period was EUR 94 million 
(121).                                                                          

Investments in tangible and intangible assets totalled EUR 73 million (59)      
during January-June 2007. The largest investments were in increasing Ruukki     
Construction's capacity and in strengthening the company's capability to deliver
special products. During the report period, disposals of property plant and     
equipment amounted to EUR 4 million (4).                                        

EUR 40 million was spent on M&A arrangements during the report period. Property,
plant and equipment obtained through acquisitions increased by EUR 18 million   
and goodwill by EUR 3 million. These arrangements had no material impact on the 
amount of working capital.                                                      

Additionally, divestments taking place last year resulted in a positive cash    
flow of EUR 15 million during the report period.                                

Gross investments in tangible and intangible assets are expected to exceed EUR  
200 million during 2007. (This figure excludes any acquisitions or divestments.)


Shares and share capital                                                        

During the first six months of 2007, Rautaruukki Oyj shares were traded for a   
total of EUR 3,956 million (2,732) on the OMX Nordic Exchange Helsinki. The     
highest price quoted was EUR 48.97 in June and the lowest was EUR 27.38 in      
January. The volume weighted average share price was EUR 37.48. At 30 June 2007,
the share closed at EUR 47.57 and the company had a market capitalisation of EUR
6,668 million (3,280).                                                          

The company's registered share capital at 30 June 2007 was EUR 238.3 million    
distributed across 140,172,984 shares.                                          
                                                                                
Employee warrants based on the 2003 bond loan with warrants have been publicly  
traded on the OMX Nordic Exchange Helsinki since 24 May 2006. One warrant       
entitles the holder to subscribe one Rautaruukki share at a price of EUR 1.70.  
By 30 June 2007, warrants had been exercised to subscribe a total of 1,286,539  
shares. The outstanding warrants entitle subscription to a total of 113,461     
shares. The subscription period expires on 23 May 2009.                         

The Board of Directors is authorised to purchase a maximum of 12,000,000 of the 
company's shares (8.56 per cent of the total number of shares issued). This     
authorisation is valid for 18 months from the decision of the Annual General    
Meeting on 20 March 2007. The Board of Directors has not exercised this         
authorisation during the first six months of 2007.                              

Likewise, the Board of Directors is authorised to dispose of a maximum of       
13,785,381 treasury shares. The authorisation is valid until the close of the   
2009 Annual General Meeting. On 20 March 2007, under the Board of Directors'    
authorisation, the company transferred 84,000 treasury shares to persons covered
by the Group's share bonus scheme 2004. Subsequent to this, the company has     
1,701,381 treasury shares, which had a market value of EUR 80.9 million at 30   
June 2007.                                                                      

At the end of the report period, the Board of Directors had no valid            
authorisation to issue convertible bonds or bonds with warrants or to increase  
the company's share capital.                                                    


Environmental issues                                                            

The company's Raahe Works and the steam boilers at the Hämeenlinna Works in     
Finland come under the European Union's emissions trading scheme. In 2006, the  
Raahe Works accounted for 99.2 per cent of Rautaruukki's carbon dioxide         
emissions falling within the scope of emissions trading. The steel section mill 
in Mo i Rana, Norway, comes under a similar Norwegian emissions trading scheme. 

In June, the European Commission adopted Finland's national allocation plan for 
emissions allowances in the EU emissions trading scheme for the 2008-2012       
trading period. The Commission cut Finland's allowances by 2 million tonnes. In 
Finland's proposal, Rautaruukki's Finnish operations received emissions         
allowances in the initial free allocation based on its needs for 2008-2012, less
a matching coefficient of 5 per cent. The need was assessed using production    
capacity in 2007 and specific emissions for 1998-2002 under Finland's Emissions 
Trading Act. Because the Commission further cut Finland's emissions allowances, 
the exact allowances will not be known until after an amendment that must be    
made to the Act.                                                                

From the business aspect, the company is not expected to incur significant costs
as a result of buying emissions allowances during the current three-year trading
period 2005-2007.                                                               


Improvement in cost-effectiveness                                               

Ruukki United, the company's programme to harmonise ways of working and improve 
efficiency, aims to achieve cost savings, compared with 2004 levels, of around  
EUR 150 million by year-end 2008. EUR 62 million of this target had been        
achieved by the end of the report period.                                       

The Ruukki United programme also seeks to permanently free up some EUR 150      
million of capital by year-end 2008. EUR 81 million of this target had been     
achieved by the end of the report period.                                       

Impacts of the programme on staffing levels are ascertained on a                
project-specific basis and any reductions are expected to be made mostly through
retirement and relocation.                                                      


Events after the report period                                                  

The Board of Directors decided on 31 July 2007 to transfer 225,194 treasury     
shares to persons covered by the final incentive period 2004-2006 of the share  
bonus scheme 2000. The shares will be transferred on 3 August 2007.             


Near-term outlook                                                               

The good market in the Group's core market areas and in key customer industries 
is expected to continue. Construction activity is expected to remain brisk      
across the entire market area. It is anticipated the construction market in     
Eastern Europe will grow at a faster rate than in other areas. Demand from      
engineering industry customers is likely to remain strong in the lifting,       
handling and transportation equipment industry, as well as in the energy,       
shipbuilding and offshore sectors. The market for steel products in the Group's 
core market areas is expected to remain firm. The most significant factors of   
uncertainty relate to overall development of the global economy.                

Comparable net sales in 2007 are expected to develop in line with growth targets
set. Operating profit for 2007 is anticipated to markedly exceed the comparative
figure for last year.                                                           


This interim report is unaudited.                                               

Helsinki, 1 August 2007                                                         

Rautaruukki Corporation                                                         

Board of Directors                                                              



DIVISIONS                                                                       

Ruukki Construction                                                             

--------------------------------------------------------------------------------
| EUR million      | Q1/06 | Q2/06 |  Q3/06 | Q4/06 |   2006 |  Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Net sales        |   133 |   181 |    244 |   271 |    829 |    213 |    258 |
--------------------------------------------------------------------------------
| Operating profit |     8 |    21 |     33 |    39 |    101 |     33 |     40 |
--------------------------------------------------------------------------------
| as % of net      |     6 |    12 |     14 |    14 |     12 |     15 |     15 |
| sales            |       |       |        |       |        |        |        |
--------------------------------------------------------------------------------


During January-June 2007, Ruukki Construction had net sales of EUR 471 million  
(315), up by 50 per cent on the corresponding figure a year earlier. Operating  
profit increased to EUR 73 million (29). The division accounted for 24 per cent 
(18) of the Group's net sales. Higher net sales and operating profit were due to
good prices for total deliveries, systems and components, as well as to an      
increase in deliveries. Net sales were up particularly in Russia and Finland.   

Strong demand and the good market situation are expected to continue across     
Ruukki Construction's core market and in all product groups, despite increasing 
competition on the Eastern European market.                                     

Total deliveries continued to account for an increasing percentage of sales.    
Demand for commercial and office construction and total deliveries grew in the  
Russian and Central Eastern European markets. Deliveries of industrial halls    
increased the average size of deliveries. The number of total deliveries        
continued to grow strongly in the Nordic countries. Likewise, deliveries of     
construction components were brisk in all market areas.                         

In May, Ruukki Construction launched a new solutions package, which comprises   
many construction technology innovations to increase the speed and efficiency of
multi-storey office and commercial construction and at the same time to improve 
on-site safety. A pilot construction project based on a total delivery which    
includes the first new type of pile foundation base, as well as frame and       
façades, has already started in Helsinki in June.                               

Geographic expansion of Rautaruukki's market area in Russia continued and       
already 40 per cent of deliveries are supplied to outside Central Russia.       
Ongoing investments in Romania, Ukraine, Finland, Poland and Russia will        
markedly strengthen Rautaruukki's capability, in part already during the current
year, to deliver frame structures, sandwich panels and profiled products in     
these rapidly growing markets.                                                  
                                                                                
There was continued good demand for harbour, road and railway construction and  
for building foundation solutions. Several significant transport infrastructure 
projects are under way in the Nordic countries. These projects include the E18  
road project in Finland, for which Rautaruukki is supplying extensive pile and  
guard rail systems, as well as bridge structures. Integration of the Norwegian  
company Scanbridge AS, acquired in April 2007, was completed during the report  
period. As a result, Rautaruukki has markedly strengthened its position as a    
total supplier of demanding bridge projects in the Nordic countries.            


Ruukki Engineering                                                              

--------------------------------------------------------------------------------
| EUR million      | Q1/06 | Q2/06 | Q3/06 | Q4/06 |    2006 |  Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Net sales        |   132 |   142 |   127 |   157 |     557 |    167 |    163 |
--------------------------------------------------------------------------------
| Operating profit |    25 |    21 |    28 |    33 |     106 |     32 |     27 |
--------------------------------------------------------------------------------
| as % of turnover |    19 |    15 |    22 |    21 |      19 |     19 |     16 |
--------------------------------------------------------------------------------


During January-June 2007, Ruukki Engineering had net sales of EUR 330 million   
(274), up by 20 per cent on the corresponding figure a year earlier. Higher net 
sales were attributable to the continued extremely strong market, the           
acquisition of Omeo Mekaniska Verkstad AB, completed in January, and the        
acquisition of Hungarian company Aprítógépgyár Zrt. (AGJ), completed in May. The
division accounted for 17 per cent (15) of the Group's net sales. Operating     
profit for January-June 2007 was EUR 58 million (46). The operating margin was  
weaker compared to the previous quarter primarily because of the different sales
structure.                                                                      

Order books remained strong in all Ruukki Engineering's customer sectors.       
Whereas systems deliveries to customers in the lifting, handling and            
transportation equipment industry earlier consisted mostly of cabins for mobile 
machinery, orders are now rising for deliveries of ready-to-install booms for   
materials handling equipment. There has been an increase in deliveries to the   
energy industry of components such as the steel crane grids used in nacelles in 
wind power plants. Demand in the paper and wood processing industry has remained
strong. Likewise, order books in the shipbuilding and offshore sectors are      
extremely healthy.                                                              

The acquisition of Aprítógépgyár Zrt. (AGJ) completed in May supports           
Rautaruukki's growth strategy especially in the lifting, handling and           
transportation equipment customer segment. AGJ's production units in Hungary add
to Rautaruukki's manufacturing network in Central Eastern Europe. AGJ has       
enabled Rautaruukki to start delivering components to new customers, including  
leading Western European manufacturers of earthmoving machinery and materials   
handling equipment.                                                             


Ruukki Metals                                                                   

--------------------------------------------------------------------------------
| EUR million      | Q1/06 | Q2/06 |  Q3/06 | Q4/06 |   2006 |  Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Net sales        |   591 |   604 |    514 |   583 |  2 291 |    570 |    588 |
--------------------------------------------------------------------------------
| Operating profit |    77 |    87 |     89 |   111 |    364 |    119 |    117 |
--------------------------------------------------------------------------------
| as % of net      |    13 |    14 |     17 |    19 |     16 |     21 |     20 |
| sales            |       |       |        |       |        |        |        |
--------------------------------------------------------------------------------


During January-June 2007, Ruukki Metals had net sales of EUR 1,159 million      
(1,195), up by 11 per cent against the comparable figure of EUR 1,044 million a 
year earlier. The comparable figures exclude the Nordic Reinforcing units, which
were part of the business until 31 July 2006. Operating profit was up by 44 per 
cent to EUR 236 million (164). Comparable operating profit for the corresponding
period a year earlier was EUR 150 million. Greater profitability was            
attributable to stronger sales prices and a change in the sales structure.      
Special products continue to make up an increasing share of sales. The division 
accounted for 59 per cent (67) of consolidated net sales.                       

Demand has held up well in the division's core market areas and customer        
industries. There was particularly good demand for hot-rolled plates and        
colour-coated products. Due to strong demand, delivery times are still long for 
certain products. Prices of steel products have further strengthened.           

To strengthen the capability to deliver special products, this autumn the       
Hyvinkää service centre in Finland will begin using laser cutting technology to 
cut heavy-duty tubes and cold-formed sections used in the engineering industry  
and construction. Laser technology will enable a new type of design for heavy   
structures.                                                                     

Rautaruukki has progressed with a project to improve customer service and       
delivery accuracy in Finland. As part of this project, work has started on      
improving small batch deliveries at the Hyvinkää, Järvenpää and Naantali service
centres.                                                                        


Ruukki Production                                                               

--------------------------------------------------------------------------------
| 1000 tonnes      | Q1/06 | Q2/06 |  Q3/06 | Q4/06 |   2006 |  Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Steel production |   888 |   860 |    725 |   744 |  3 217 |    703 |    672 |
--------------------------------------------------------------------------------
| Steel production |  709  |   693 |    705 |   744 |  2 853 |    703 |    672 |
| in Raahe         |       |       |        |       |        |        |        |
--------------------------------------------------------------------------------

Production ran normally at all works. Steel output during January-June 2007 was 
1,375,000 tonnes. The comparable figure for 2006, excluding the Mo i Rana       
reinforcing steel production divested, was 1,402,800 tonnes.                    

There was good demand for the colour-coated and tube products used in           
construction and more of these products were manufactured than a year ago.      
Demand for heavy plates was good and plate production operated at full capacity.

Prices of raw materials and energy during the first six months of 2007 were at  
the same level as those a year ago. The cost of raw materials has been agreed   
until the end of the year through annual agreements. Hedging agreements level   
out fluctuations in the world market prices of zinc and electricity. Overall,   
the cost of raw materials in steel production in 2007 is expected to be at the  
same level as in 2006.                                                          

Deliveries from Kostamuksha in Russia of iron ore pellets used as a raw material
in iron production at the Raahe Works in Finland ceased at the end of March.    
Rautaruukki and LKAB of Sweden signed a long-term contract for the supply of    
iron ore pellets in January 2007. Since 1 April 2007, LKAB has supplied all the 
iron pellets used at Raahe. The pellets come from Northern Sweden.              

Good progress was made with investments to enhance the delivery capability of   
special products. A direct quenching unit is being installed in the plate mill  
in Raahe in August. This unit will enable Ruukki Metals to considerably expand  
the range and increase manufacturing volumes of high-strength steels.           
Investments to increase the delivery capability of high-strength steels support 
Ruukki Engineering's business in the growing lifting, handling and              
transportation equipment industry and also enable Ruukki Metals to increase the 
share of sales of high-strength steels. Several development projects relating to
new types of coating and coating production are also under way. These projects  
particularly support Ruukki Construction's business.                            


TABLES                                                                          

This interim report has been prepared in accordance with IAS 34 and is in       
conformity with the accounting policies published in the annual financial       
statements.                                                                     

Individual figures and totals appearing in the tables have been rounded to the  
nearest full million of euros. This means that they will not always tally when  
added together or subtracted. The figures given in tables are unaudited.        


--------------------------------------------------------------------------------
| SUMMARY CONSOLIDATED INCOME STATEMENT                                        |
--------------------------------------------------------------------------------
| EUR million                 |  Q2/07 |   Q2/06 | Q1-Q2/0 | Q1-Q2/0 |    2006 |
|                             |        |         |       7 |       6 |         |
--------------------------------------------------------------------------------
| Net sales                   |  1 009 |     928 |   1 960 |   1 784 |   3 682 |
--------------------------------------------------------------------------------
| Other operating income      |      5 |       6 |       9 |      10 |      32 |
--------------------------------------------------------------------------------
| Operating expenses          |   -799 |    -770 |  -1 538 |  -1 499 |  -3 037 |
--------------------------------------------------------------------------------
| Depreciation, amortisation  |    -38 |     -37 |     -75 |     -74 |    -148 |
| and impairment losses       |        |         |         |         |         |
--------------------------------------------------------------------------------
| Operating profit            |    178 |     127 |     356 |     222 |     529 |
--------------------------------------------------------------------------------
| Finance income and expense  |     -4 |      -7 |      -6 |     -13 |     -22 |
--------------------------------------------------------------------------------
| Share of results of         |      2 |      16 |       3 |      29 |     129 |
| associated companies        |        |         |         |         |         |
--------------------------------------------------------------------------------
| Profit before taxes         |    176 |     136 |     353 |     237 |     635 |
--------------------------------------------------------------------------------
| Taxes                       |    -46 |     -29 |     -91 |     -53 |    -134 |
--------------------------------------------------------------------------------
| Profit for the period       |    130 |     106 |     262 |     184 |     501 |
--------------------------------------------------------------------------------
| Attributable to:            |        |         |         |         |         |
--------------------------------------------------------------------------------
| Equity shareholders of the  |    130 |     106 |     261 |     184 |     501 |
| parent                      |        |         |         |         |         |
--------------------------------------------------------------------------------
| Minority interests          |      0 |       0 |       1 |       0 |       0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share, |   0.93 |    0.77 |    1.89 |    1.33 |    3.65 |
| EUR                         |        |         |         |         |         |
--------------------------------------------------------------------------------
| Basic earnings per share,   |   0.94 |    0.78 |    1.89 |    1.35 |    3.66 |
| EUR                         |        |         |         |         |         |
--------------------------------------------------------------------------------
| Operating profit as % of    |   17.7 |    13.7 |    18.2 |    12.4 |    14.4 |
| net sales                   |        |         |         |         |         |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| SUMMARY CONSOLIDATED BALANCE SHEET    |      30 Jun |    30 Jun |     31 Dec |
--------------------------------------------------------------------------------
| EUR million                           |        2007 |     2006  |       2006 |
--------------------------------------------------------------------------------
| ASSETS                                |             |           |            |
--------------------------------------------------------------------------------
| Non-current assets                    |       1 473 |     1 549 |      1 454 |
--------------------------------------------------------------------------------
| Current assets                        |             |           |            |
--------------------------------------------------------------------------------
|    Inventories                        |         693 |       499 |        586 |
--------------------------------------------------------------------------------
|    Trade and other receivables        |         666 |       595 |        624 |
--------------------------------------------------------------------------------
|    Cash and cash equivalents          |         116 |        46 |        361 |
--------------------------------------------------------------------------------
|    Non-current assets available for   |           0 |       218 |          0 |
|    sale*                              |             |           |            |
--------------------------------------------------------------------------------
|                                       |       2 948 |     2 908 |      3 026 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                |             |           |            |
--------------------------------------------------------------------------------
| Equity                                |             |           |            |
--------------------------------------------------------------------------------
|    Equity attributable to             |       1 801 |     1 519 |      1 832 |
|    shareholders of the parent         |             |           |            |
--------------------------------------------------------------------------------
|    Minority interests                 |           3 |         1 |          1 |
--------------------------------------------------------------------------------
| Non-current liabilities               |             |           |            |
--------------------------------------------------------------------------------
|    Interest-bearing                   |         207 |       334 |        218 |
--------------------------------------------------------------------------------
|    Other                              |         214 |       215 |        226 |
--------------------------------------------------------------------------------
| Current liabilities                   |             |           |            |
--------------------------------------------------------------------------------
|    Interest-bearing                   |         141 |       271 |        164 |
--------------------------------------------------------------------------------
|    Trade payables and other           |         582 |       501 |        584 |
|    liabilities                        |             |           |            |
--------------------------------------------------------------------------------
|    Liabilities related to non-current |           0 |        66 |          0 |
|    assets available for sale*         |             |           |            |
--------------------------------------------------------------------------------
|                                       |       2 948 |     2 908 |      3 026 |
--------------------------------------------------------------------------------
| * In the comparable information for 2006, the Group has classified the       |
| Nordic reinforcing steel business as assets available for sale. In April     |
| 2006, Rautaruukki signed an agreement to sell this business.                 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| SUMMARY CASH FLOW STATEMENT          |             |            |            |
--------------------------------------------------------------------------------
| EUR million                          |    Q1-Q2/07 |   Q1-Q2/06 |       2006 |
--------------------------------------------------------------------------------
| Profit for the period                |         262 |        184 |        501 |
--------------------------------------------------------------------------------
| Adjustments                          |         170 |        111 |        168 |
--------------------------------------------------------------------------------
| Cash flow before change in working   |         431 |        295 |        669 |
| capital                              |             |            |            |
--------------------------------------------------------------------------------
| Change in working capital            |        -153 |        -18 |        -76 |
--------------------------------------------------------------------------------
| Financing items and taxes            |        -116 |       -138 |       -197 |
--------------------------------------------------------------------------------
| Cash flow from operating activities  |         163 |        139 |        396 |
--------------------------------------------------------------------------------
| Cash flow from investing activities  |         -94 |       -121 |        140 |
--------------------------------------------------------------------------------
| Cash flow before financing           |          69 |         18 |        536 |
| activities                           |             |            |            |
--------------------------------------------------------------------------------
| Dividends paid*                      |        -276 |       -191 |       -191 |
--------------------------------------------------------------------------------
| Other net cash flow from financing   |         -38 |         83 |       -147 |
| activities                           |             |            |            |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents  |        -245 |        -91 |        198 |
--------------------------------------------------------------------------------
| *) Dividends paid in 2007 include an extra dividend totalling EUR 69 million |
| out of the capital gain arising from the divestment of Ovako.                |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| KEY FIGURES                   |     Q1-Q2/07 |      Q1-Q2/06 |          2006 |
--------------------------------------------------------------------------------
| Net sales, EUR m              |        1 960 |         1 784 |         3 682 |
--------------------------------------------------------------------------------
| Operating profit, EUR m       |          356 |           222 |           529 |
--------------------------------------------------------------------------------
| as % of net sales             |         18.2 |          12.4 |          14.4 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR m    |          353 |           237 |           635 |
--------------------------------------------------------------------------------
| as % of net sales             |         18.0 |          13.3 |          17.3 |
--------------------------------------------------------------------------------
| Profit for the period, EUR m  |          262 |           184 |           501 |
--------------------------------------------------------------------------------
| as % of net sales             |         13.3 |          10.3 |          13.6 |
--------------------------------------------------------------------------------
| Return on capital employed*,  |         36.3 |          24.1 |          31.5 |
| %                             |              |               |               |
--------------------------------------------------------------------------------
| Return on equity*, %          |         34.9 |          25.5 |          30.1 |
--------------------------------------------------------------------------------
| Equity ratio, %               |         62.6 |          53.2 |          61.6 |
--------------------------------------------------------------------------------
| Gearing ratio, %              |         12.9 |          35.4 |           1.2 |
--------------------------------------------------------------------------------
| Net interest-bearing          |          233 |           538 |            22 |
| liabilities, EUR m            |              |               |               |
--------------------------------------------------------------------------------
| Equity per share, EUR         |        13.00 |         11.12 |         13.26 |
--------------------------------------------------------------------------------
| Personnel on average          |       14 607 |        12 645 |        13 121 |
--------------------------------------------------------------------------------
| Number of shares              |  140 172 984 |   138 886 445 |   139 957 418 |
--------------------------------------------------------------------------------
| - excluding treasury shares   |  138 471 603 |   136 584 748 |   138 172 037 |
--------------------------------------------------------------------------------
| - diluted, average            |  138 410 652 |   137 853 798 |   137 144 515 |
--------------------------------------------------------------------------------
| * Based on previous 12 months |              |               |               |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| CHANGES IN EQUITY Q1-Q2/2007                                                 |
--------------------------------------------------------------------------------
| EUR million                                                                  |
--------------------------------------------------------------------------------
|                |      Attributable to equity shareholders of the parent      |
--------------------------------------------------------------------------------
|                | Share | Share |   Fair | Trans- | Ret-ain |  Total | Min-or |
|                | cap-i | prem. |  value | lation |      ed |        |    ity |
|                |   tal |  act. |    and |  diff. | earn-in |        |   int. |
|                |       |       |  other |        |      gs |        |        |
|                |       |       | re-ser |        |         |        |        |
|                |       |       |    ves |        |         |        |        |
--------------------------------------------------------------------------------
| EQUITY AT 1    |   238 |   220 |     44 |     -3 |   1 333 |  1 832 |      1 |
| JAN            |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Cash flow      |       |       |        |        |         |        |        |
| hedging        |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Transferred to |       |       |    -24 |        |         |    -24 |        |
|    equity      |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Deferred taxes |       |       |      6 |        |         |      6 |        |
--------------------------------------------------------------------------------
| Change in      |       |       |        |        |         |        |        |
| translation    |       |       |        |        |         |        |        |
| difference     |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Cost of        |       |       |        |        |         |        |        |
| share-based    |       |       |        |        |         |        |        |
| payments       |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Disposal of    |       |       |     -2 |        |       3 |      1 |        |
| treasury       |       |       |        |        |         |        |        |
| shares         |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Dividend       |       |       |        |        |    -276 |   -276 |        |
| distribution   |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Profit for the |       |       |        |        |     261 |    261 |      2 |
| period         |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| EQUITY AT 30   |   238 |   220 |     25 |     -3 |   1 321 |  1 801 |      3 |
| JUNE           |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| CHANGE IN EQUITY Q1-Q2/2006                                                  |
--------------------------------------------------------------------------------
| EUR million                                                                  |
--------------------------------------------------------------------------------
|                |     Attributable to equity shareholders of the parent       |
--------------------------------------------------------------------------------
|                | Share | Share |   Fair | Trans- | Ret-ain |  Total | Min-or |
|                | cap-i | prem. |  value | lation |      ed |        |    ity |
|                |   tal |  act. |    and |  diff. | earn-in |        |   int. |
|                |       |       |  other |        |      gs |        |        |
|                |       |       | re-ser |        |         |        |        |
|                |       |       |    ves |        |         |        |        |
--------------------------------------------------------------------------------
| EQUITY AT 1    |   236 |   220 |     31 |     -5 |   1 016 |  1 497 |      1 |
| JAN            |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Cash flow      |       |       |        |        |         |        |        |
| hedging        |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Transferred to |       |       |     32 |        |         |     32 |        |
|    equity      |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Deferred taxes |       |       |     -8 |        |         |     -8 |        |
--------------------------------------------------------------------------------
| Cost of        |       |       |      2 |        |         |      2 |        |
| share-based    |       |       |        |        |         |        |        |
| payments       |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Disposal of    |       |       |     -3 |        |       2 |      0 |        |
| treasury       |       |       |        |        |         |        |        |
| shares         |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Change in      |       |       |        |      4 |         |      4 |        |
| translation    |       |       |        |        |         |        |        |
| difference     |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Dividend       |       |       |        |        |    -191 |   -191 |        |
| distribution   |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| Profit for the |       |       |        |        |     184 |    184 |        |
| period         |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------
| EQUITY AT 30   |   236 |   220 |     55 |     -1 |   1 009 |  1 519 |      1 |
| JUNE           |       |       |        |        |         |        |        |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| NET SALES BY DIVISION                                                        |
--------------------------------------------------------------------------------
| EUR million                     |      Q1-Q2/07 |     Q1-Q2/06 |        2006 |
--------------------------------------------------------------------------------
| Ruukki Construction             |           471 |          315 |         829 |
--------------------------------------------------------------------------------
| Ruukki Engineering              |           330 |          274 |         557 |
--------------------------------------------------------------------------------
| Ruukki Metals                   |         1 159 |        1 195 |       2 291 |
--------------------------------------------------------------------------------
| Group management and other      |             0 |            2 |           4 |
| units                           |               |              |             |
--------------------------------------------------------------------------------
| Consolidated net sales          |         1 960 |        1 784 |       3 682 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| OPERATING PROFIT BY DIVISION                                                 |
--------------------------------------------------------------------------------
| EUR million                     |      Q1-Q2/07 |     Q1-Q2/06 |        2006 |
--------------------------------------------------------------------------------
| Ruukki Construction             |            73 |           29 |         101 |
--------------------------------------------------------------------------------
| Ruukki Engineering              |            58 |           46 |         106 |
--------------------------------------------------------------------------------
| Ruukki Metals                   |           236 |          164 |         364 |
--------------------------------------------------------------------------------
| Group management and other      |           -10 |          -17 |         -42 |
| units                           |               |              |             |
--------------------------------------------------------------------------------
| Consolidated operating profit   |           356 |          222 |         529 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| QUARTERLY NET SALES                                                          |
--------------------------------------------------------------------------------
| EUR million            |  Q1/06 |  Q2/06 |  Q3/06 |  Q4/06 |  Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Ruukki Construction    |    133 |    181 |    244 |    271 |    213 |    258 |
--------------------------------------------------------------------------------
| Ruukki Engineering     |    132 |    142 |    127 |    157 |    167 |    163 |
--------------------------------------------------------------------------------
| Ruukki Metals          |    591 |    604 |    514 |    583 |    570 |    588 |
--------------------------------------------------------------------------------
| Group management and   |      0 |      1 |      0 |      2 |      0 |      0 |
| other units            |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Consolidated net sales |    856 |    928 |    885 |  1 013 |    950 |  1 009 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| QUARTERLY OPERATING PROFIT                                                   |
--------------------------------------------------------------------------------
| EUR million            |  Q1/06 | Q2/06 |  Q3/06 |  Q4/06 |   Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Ruukki Construction    |      8 |    21 |     33 |     39 |      33 |     40 |
--------------------------------------------------------------------------------
| Ruukki Engineering     |     25 |    21 |     28 |     33 |      32 |     27 |
--------------------------------------------------------------------------------
| Ruukki Metals          |     77 |    87 |     89 |    111 |     119 |    117 |
--------------------------------------------------------------------------------
| Group management and   |    -15 |    -2 |     -9 |    -16 |      -6 |     -5 |
| other units            |        |       |        |        |         |        |
--------------------------------------------------------------------------------
| Consolidated operating |     95 |   127 |    140 |    167 |     178 |    178 |
| profit                 |        |       |        |        |         |        |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| QUARTERLY NET SALES (PRO FORMA)                                              |
| EXCLUDING NORDIC REINFORCING UNITS                                           |
--------------------------------------------------------------------------------
| EUR million            |  Q1/06 | Q2/06 |  Q3/06 |  Q4/06 |   Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Ruukki Construction    |    133 |   181 |    244 |    271 |     213 |    258 |
--------------------------------------------------------------------------------
| Ruukki Engineering     |    132 |   142 |    127 |    157 |     167 |    163 |
--------------------------------------------------------------------------------
| Ruukki Metals          |    521 |   523 |    497 |    583 |     570 |    588 |
--------------------------------------------------------------------------------
| Group management and   |      0 |     1 |      0 |      2 |       0 |      0 |
| other units            |        |       |        |        |         |        |
--------------------------------------------------------------------------------
| Consolidated net sales |    786 |   848 |    868 |  1 013 |     950 |  1 009 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| QUARTERLY OPERATING PROFIT (PRO FORMA)                                       |
| EXCLUDING NORDIC REINFORCING UNITS                                           |
--------------------------------------------------------------------------------
| EUR million            |  Q1/06 | Q2/06 |  Q3/06 |  Q4/06 |   Q1/07 |  Q2/07 |
--------------------------------------------------------------------------------
| Ruukki Construction    |      8 |    21 |     33 |     39 |      33 |     40 |
--------------------------------------------------------------------------------
| Ruukki Engineering     |     25 |    21 |     28 |     33 |      32 |     27 |
--------------------------------------------------------------------------------
| Ruukki Metals          |     71 |    79 |     90 |    111 |     119 |    117 |
--------------------------------------------------------------------------------
| Group management and   |    -15 |    -2 |     -9 |    -16 |      -6 |     -5 |
| other units            |        |       |        |        |         |        |
--------------------------------------------------------------------------------
| Consolidated operating |     89 |   119 |    141 |    167 |     178 |    178 |
| profit                 |        |       |        |        |         |        |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| NET SALES BY REGION                                                          |
--------------------------------------------------------------------------------
| as % of net sales                   |    Q1-Q2/07 |     Q1-Q2/06 |      2006 |
--------------------------------------------------------------------------------
| Finland                             |          31 |           32 |        31 |
--------------------------------------------------------------------------------
| Other Nordic countries              |          32 |           34 |        31 |
--------------------------------------------------------------------------------
| Central Eastern Europe,             |          19 |           13 |        17 |
| Russia and Ukraine                  |             |              |           |
--------------------------------------------------------------------------------
| Rest of Europe                      |          16 |           19 |        19 |
--------------------------------------------------------------------------------
| Other countries                     |           2 |            2 |         2 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES                                                       |
--------------------------------------------------------------------------------
| EUR million                         |      Jun 07 |     Jun 06 |      Dec 06 |
--------------------------------------------------------------------------------
| Mortgaged real estates              |          25 |         34 |          26 |
--------------------------------------------------------------------------------
| Pledges given                       |          16 |         18 |           5 |
--------------------------------------------------------------------------------
| Collateral                          |             |            |             |
--------------------------------------------------------------------------------
|    Given on behalf of               |           0 |          0 |           0 |
|    associates                       |             |            |             |
--------------------------------------------------------------------------------
|    Given on behalf of others        |          12 |          4 |           5 |
--------------------------------------------------------------------------------
| Leasing and rental responsibilities |          99 |        135 |         100 |
--------------------------------------------------------------------------------
| Other financial liabilities         |           1 |          4 |          11 |
--------------------------------------------------------------------------------


Subsequent to the divestment of the operating companies of Oy Ovako Ab, both Oy 
Ovako Ab and its subsidiary Ovako Svenska AB were put into voluntary liquidation
and most of Oy Ovako Ab's assets were distributed to shareholders as a          
disbursement. The shareholders (Rautaruukki Corporation, AB SKF and Wärtsilä    
Corporation) have, as required under the Finnish Companies Act, submitted to the
liquidator a directly enforceable guarantee as surety against payment of the    
disbursements.                                                                  


--------------------------------------------------------------------------------
| VALUES OF DERIVATIVE CONTRACTS AT 30 JUNE 2007, EUR million                  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW HEDGES INCLUDED IN HEDGE ACCOUNTING                                |
--------------------------------------------------------------------------------
|                                |         Nominal value |          Fair value |
--------------------------------------------------------------------------------
| Interest rate derivatives      |                       |                     |
--------------------------------------------------------------------------------
|    Interest rate swaps         |                    25 |                 0.1 |
--------------------------------------------------------------------------------
| Zinc derivatives               |                       |                     |
--------------------------------------------------------------------------------
|    Forward contracts *         |                36 000 |                23.9 |
--------------------------------------------------------------------------------
| Electricity derivatives        |                       |                     |
--------------------------------------------------------------------------------
|    Forward contracts **        |                 1 258 |                 8.0 |
--------------------------------------------------------------------------------
| * tonnes                                                                     |
--------------------------------------------------------------------------------
| ** GWh                                                                       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVES NOT INCLUDED IN HEDGE ACCOUNTING                                 |
--------------------------------------------------------------------------------
|                                |         Nominal value |          Fair value |
--------------------------------------------------------------------------------
|      Interest rate derivatives |                       |                     |
--------------------------------------------------------------------------------
|    Interest rate swaps         |                    25 |                 0.2 |
--------------------------------------------------------------------------------
| Foreign currency derivatives   |                       |                     |
--------------------------------------------------------------------------------
|    Forward contracts           |                   597 |                -7.5 |
--------------------------------------------------------------------------------
|    Options                     |                       |                     |
--------------------------------------------------------------------------------
|       Bought                   |                    80 |                -0.9 |
--------------------------------------------------------------------------------
|       Sold                     |                    80 |                 0.2 |
--------------------------------------------------------------------------------
|                                |                       |                -8.2 |
--------------------------------------------------------------------------------


The unrealised result of cash flow hedges is recognised in equity to the extent 
the hedge is effective. Other changes in fair value are recorded through profit 
and loss.                                                                       


--------------------------------------------------------------------------------
| CHANGES IN PLANT, PROPERTY AND EQUIPMENT                                     |
--------------------------------------------------------------------------------
| EUR million                         |    Q1-Q2/07 |    Q1-Q2/06 |       2006 |
--------------------------------------------------------------------------------
| Carrying value at start of period   |       1 043 |       1 033 |      1 033 |
--------------------------------------------------------------------------------
| Increase                            |          66 |          52 |        130 |
--------------------------------------------------------------------------------
| Increase through acquisitions       |          14 |          42 |         71 |
--------------------------------------------------------------------------------
| Decrease                            |          -2 |          -2 |        -19 |
--------------------------------------------------------------------------------
| Decrease through divestments        |           0 |           0 |        -42 |
--------------------------------------------------------------------------------
| Depreciation and value adjustments  |         -64 |         -68 |       -130 |
--------------------------------------------------------------------------------
| Exchange rate differences           |           1 |           0 |         -1 |
--------------------------------------------------------------------------------
| Carrying value at end of period     |       1 059 |       1 057 |      1 043 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| TRANSACTIONS WITH RELATED PARTIES (ASSOCIATED COMPANIES)                     |
--------------------------------------------------------------------------------
| EUR million                         |    Q1-Q2/07 |    Q1-Q2/06 |       2006 |
--------------------------------------------------------------------------------
| Sales to associated companies       |          14 |          16 |         29 |
--------------------------------------------------------------------------------
| Purchases from associated companies |           2 |          12 |         27 |
--------------------------------------------------------------------------------
| Non-current receivables             |           0 |           0 |          0 |
| at 30 June                          |             |             |            |
--------------------------------------------------------------------------------
| Trade and other receivables         |           7 |           8 |         10 |
| at 30 June                          |             |             |            |
--------------------------------------------------------------------------------
| Trade and other creditors           |           1 |           9 |          2 |
| at 30 June                          |             |             |            |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| INVESTMENT COMMITMENTS*                                |                     |
--------------------------------------------------------------------------------
| EUR million                                            |  after 30 June 2007 |
--------------------------------------------------------------------------------
| Maintenance investments                                |                  66 |
--------------------------------------------------------------------------------
| Development investments and investments in special     |                 172 |
| products                                               |                     |
--------------------------------------------------------------------------------
| Total                                                  |                 239 |
--------------------------------------------------------------------------------
| *Investment commitments include the estimated costs of projects that have    |
| received permission to go ahead.                                             |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| INFORMATION ABOUT ACQUISITIONS*     |                  |                     |
--------------------------------------------------------------------------------
| EUR million                         |       Fair value |  Acquired company's |
|                                     |                  |     carrying amount |
--------------------------------------------------------------------------------
| Acquisition cost                    |               19 |                     |
--------------------------------------------------------------------------------
| - including conditional purchase    |                  |                     |
| price                               |                  |                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets and liabilities of acquired  |                  |                     |
| companies (carrying value)          |                  |                     |
--------------------------------------------------------------------------------
| Non-current assets                  |               20 |                  14 |
--------------------------------------------------------------------------------
| Current assets                      |                  |                     |
--------------------------------------------------------------------------------
|    Inventories                      |                9 |                   9 |
--------------------------------------------------------------------------------
|    Trade and other receivables      |               11 |                  11 |
--------------------------------------------------------------------------------
|    Cash and cash equivalents        |                2 |                   2 |
--------------------------------------------------------------------------------
| Total assets                        |               42 |                  36 |
--------------------------------------------------------------------------------
| Non-current liabilities             |                  |                     |
--------------------------------------------------------------------------------
|    Interest-bearing                 |                4 |                   3 |
--------------------------------------------------------------------------------
|    Other                            |                1 |                   1 |
--------------------------------------------------------------------------------
| Current liabilities                 |                  |                     |
--------------------------------------------------------------------------------
|    Interest-bearing                 |                2 |                   2 |
--------------------------------------------------------------------------------
|    Other                            |               18 |                  16 |
--------------------------------------------------------------------------------
| Total liabilities                   |               25 |                  23 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets                          |               17 |                  13 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost                    |               19 |                     |
--------------------------------------------------------------------------------
| Goodwill                            |                3 |                     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost paid in cash       |               19 |                     |
--------------------------------------------------------------------------------
| Cash and cash equivalents of the    |                2 |                     |
| acquired subsidiary                 |                  |                     |
--------------------------------------------------------------------------------
| Impact on cash flow                 |               17 |                     |
--------------------------------------------------------------------------------
| *)Includes information about the following acquisitions: AB Omeo Mekaniska   |
| Verkstad, Scanbridge AS, Aprítógépgyár Zrt. and redemption of the shares of  |
| Teräsportti Oy                                                               |
--------------------------------------------------------------------------------


FURTHER INFORMATION IS AVAILABLE FROM                                           

Sakari Tamminen, President & CEO, tel. +358 20 592 9075                         
Mikko Hietanen, CFO, tel. +358 20 592 9030                                      


Rautaruukki Corporation                                                         


Taina Kyllönen                                                                  
VP, Corporate Communications                                                    

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

www.ruukki.com                                                                  

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