Ruukki Group Oyj - Company Announcement

UPDATE ON THE DISPUTE WITH THE VENDORS OF MOGALE ALLOYS

15:15 London, 17:15 Helsinki, 24 September 2010 - Ruukki Group Plc, Stock       
Exchange Release                                                                

UPDATE ON THE DISPUTE WITH THE VENDORS OF MOGALE ALLOYS                         

Ruukki Group Plc (“Ruukki” or the “Company”) (LSE: RKKI, OMX: RUG1V) wishes to  
update shareholders on the dispute with certain vendors (“Vendors”) of Mogale   
Alloys (Proprietary) Limited (“Mogale Alloys”) regarding the acquisition of     
Mogale Alloys.                                                                  

Ruukki acquired Mogale Alloys in May 2009. Payment of 30% of the full purchase  
price was conditional and deferred upon certain conditions, as outlined in the  
acquisition agreement, being met before May 2014, otherwise none of this portion
of the purchase payment is due. Ruukki has every intention to comply with its   
obligations, as and when they arise. The Vendors have already been paid in      
excess of 70% of the purchase price.                                            

As previously disclosed in the London Stock Exchange listing prospectus in June 
2010, there is a bona fide dispute as to whether certain conditions, clearly    
specified in the acquisition agreement, have been met. Payment of the remaining 
ZAR 600 million (EUR 63.6 million), due under the acquisition agreement is only 
triggered when the last, remaining condition in relation to each of the four    
furnaces acquired with Mogale Alloys has been met.                              

Ruukki has received a notification that the Vendors have commenced legal actions
in South Africa against the Company relating to the remaining ZAR 600 million,  
which represents 30% of the full purchase price for Mogale Alloys, along with a 
claim for interest of ZAR 88.2 million (EUR 9.3 million). Ruukki has already    
recorded the majority of the claimed amount as a liability in Ruukki's          
consolidated balance sheet. The result of the court case is, therefore, not     
expected to have any significant negative effect on the financial status of the 
Company in any event.                                                           

The acquisition agreement provides that where there is a dispute in regard to   
whether or not amounts are due and payable, such a dispute is to be referred to 
an independent attorney for determination. The Vendors have nevertheless        
instituted legal proceedings against Ruukki, who will vigorously defend the     
claim.                                                                          

Furthermore ZAR 12 million (EUR 1.3 million), of the remaining ZAR 600 million  
(EUR 63.6 million), was erroneously paid to the Vendors after the Vendors       
falsely alleged that one of the furnaces had met all of the conditions. It is   
Ruukki's intention to claim this amount back. Once Ruukki ascertained           
independent legal and environmental expert opinion, which clearly concluded that
the Vendors have not complied with all the conditions, Ruukki informed the      
Vendors that the outstanding payment amount would not be due and payable until  
all of the conditions are met, as specified in the acquisition agreement.       

RUUKKI GROUP PLC                                                                
Alwyn Smit                                                                      
CEO                                                                             

Ruukki Group is an industrial group focusing on minerals and wood processing    
businesses. Ruukki Group Plc's shares are listed on NASDAQ OMX Helsinki and the 
London Stock Exchange.                                                          


For additional information, please contact:                                     

Ruukki Group Plc                                                                
Alwyn Smit, CEO: +44 20 7368 6763                                               
Alex Buck, IR: +44 7932 740 452                                                 
www.ruukkigroup.fi                                                              

Investec Bank plc                                                               
Stephen Cooper: +44 20 7597 5104                                                

Pelham Bell Pottinger                                                           
Charles Vivian: +44 20 7861 3126                                                
James MacFarlane: +44 20 7861 3864