Outokumpu Oyj - Company Announcement

Outokumpu comments on the Terni divestment process

OUTOKUMPU OYJ
STOCK EXCHANGE RELEASE
June 7, 2013 at 10.00 am EET


In accordance with the commitments given to the European Commission in the
context of the merger with Inoxum, Outokumpu continues to pursue the divestment
of AST (Acciai Speciali Terni) stainless steel operations in Terni, Italy. In a
challenging environment for the European stainless industry Outokumpu has
maintained an active dialogue with the European Commission, the Italian
government and local Terni institutions to facilitate the AST divestment as
soon as possible. In response to recent public speculation about the divestment
process in Italy, Outokumpu would like to offer some clarifications. 

As communicated in connection with Outokumpu's first quarter 2013 results in
April, the timeline for the Terni divestment has been extended. The conditions
of the bids Outokumpu has received so far for the remedy assets have not been
satisfactory. Outokumpu continues to work intensively with all parties to
provide as quick a solution as is possible. 

In order to preserve AST's competitiveness and viability during the period
prior to the divestment Outokumpu has agreed at the request of the European
Commission to implement a number of additional safeguards. 

While AST's day-to-day operations are not controlled by Outokumpu, these
safeguards are intended to ensure that AST's financial results and ability to
continue doing business will not be adversely impacted by the on-going
divestment process. The AST management will remain unchanged and will continue
to work with the monitoring trustee appointed by the Commission to oversee the
divestment process. AST will continue to use the same European service center
network as before. AST will also continue to supply Tubificio di Terni with its
products under pre-existing arrangements. Furthermore, Outokumpu has already
enabled AST to utilize the Willich service center to market its unique products
in Germany and at the suggestion of the Commission AST will also be supplying
standard products to this service center, so that AST's reach in Europe will
continue to expand. In addition AST continues to supply significant volumes to
Outokumpu's overseas facilities. 

After a constructive dialogue with AST management and the Commission, Outokumpu
has also strengthened AST's equity position and empowered AST to continue its
2013 investment program. This is in addition to the EUR 400 million investments
made in the past five years at AST. In addition, prior to the divestment,
Outokumpu will continue to fully finance AST through the cash pool arrangement
that AST enjoyed before the divestment was announced. 

Despite the very difficult market conditions, AST's financial performance
improved in the last reported quarter (January-March 2013). This is an
encouraging development considering the challenging economic environment in
Europe, and especially in Italy. While the economic environment remains
challenging, Outokumpu believes that AST is maintaining and strengthening its
position and has full faith in the ability of AST management to lead AST
through these difficult trading conditions. 

For more information:

Investors: Tamara Weinert, tel. +358 9 421 2438, mobile +358 40 751 7194

Media: Kari Tuutti, tel. +358 9 421 2432, mobile +358 40 717 0830

Outokumpu Group



Outokumpu is the global leader in stainless steel and high performance alloys.
We create advanced materials that are efficient, long lasting and recyclable -
thus building a world that lasts forever. Stainless steel, invented a century
ago, is an ideal material to create lasting solutions in demanding applications
from cutlery to bridges, energy and medical equipment: it is 100% recyclable,
corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs
more than 16 000 professionals in more than 40 countries, with headquarters in
Espoo, Finland and shares listed in the NASDAQ OMX Helsinki. www.outokumpu.com

Attachments:

Terni 07062013 ENG.pdf