Raute - Company Announcement

RAUTE'S 8 MEUR CONTRACT NOT EFFECTIVE BY THE END OF JUNE

RAUTE CORPORATION	STOCK EXCHANGE RELEASE 1 July 2009 at 2.30 p.m.               
RAUTE'S 8 MEUR CONTRACT NOT EFFECTIVE BY THE END OF JUNE                        

Raute Corporation's contract with a Chinese customer to deliver Raute's         
machinery to Russia, which was signed and published on 20 May 2009, has not     
become effective in the estimated schedule in June, due to a reason not         
depending on Raute. Thus, the machinery of a veneer mill worth about EUR 8      
million according to this contract is not included in the company's order book  
as of 30 June 2009. Both the customer and Raute continue to work towards making 
the contract effective.                                                         

The market situation in the wood products industry has remained difficult and no
new significant investments have been started. Raute will continue to adapt its 
operations to the weak demand and the low order book. Due to the low order book,
weak demand and the postponements of investment decisions relating to mill-scale
projects, Raute's net sales will decline significantly in 2009. Operating profit
will be negative, despite the adaptation                                        
measures taken.                                                                 

Raute will publish its interim report for January - June 2009 on 4 August 2009. 


RAUTE CORPORATION                 

Tapani Kiiski                                                                   
President and CEO                                                               


FURTHER INFORMATION:                                                            
Mr. Tapani Kiiski, President and CEO, mobile +358 400 814 148                   
Ms. Arja Hakala, CFO, mobile +358 400 710 387                                   

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. The company 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 and main production plant are in Nastola,      
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2008
were EUR 98.5 million and the number of personnel 573. More information on the  
company can be found at www.raute.com.