Raute - Company Announcement

RAUTE CONTINUES ADAPTATION TO MARKET SITUATION AND INITIATES EMPLOYEE NEGOTIATIONS ON NEW MEASURES

RAUTE CORPORATION	   STOCK EXCHANGE RELEASE   8 OCTOBER 2010 at 10:30 a.m. 


RAUTE CONTINUES ADAPTATION TO MARKET SITUATION AND INITIATES EMPLOYEE           
NEGOTIATIONS ON NEW MEASURES                                                    

Raute Corporation continues its adaptation measures to the weak continuing and  
uncertain market situation. The lower level of demand for investments and       
services in the wood products industry is estimated to become a longer-standing 
situation, in which efficient and competitive performance in operations requires
also permanent adaptation of personnel.                                         

Raute Corporation has initiated negotiations in compliance with the Act on      
Co-operation with the salaried and senior salaried employees of its units in    
Finland. The negotiations are estimated to continue six weeks. The objective of 
these measures is adaptation to the continuing weak market demand, fluctuation  
of the order book, and to improve profitability. The employer's proposal for    
adjustment measures consists of temporary lay-offs of different duration, and   
termination of a maximum of 25 employments.                                     

The negotiations concern altogether 246 salaried and senior salaried employees, 
of whom 210 persons work in Nastola, 12 persons in Jyväskylä, and 24 persons in 
Kajaani. The previously concluded adaptation measures concerning the hourly     
workers in Finland are adequate for the time being.                             

At the end of June, Raute Group employed altogether 522 persons, of which the   
Finnish units accounted for 394 persons.                                        


RAUTE CORPORATION                                                               

Tapani Kiiski                                                                   
President and CEO                                                               



FURTHER INFORMATION:                                                            
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560,  
mobile +358 400 814 148                

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

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