Ruukki Group Oyj - Company Announcement

RUUKKI GROUP SELLS FINNISH HOUSE BUILDING BUSINESS TO CAPMAN

07:00 London, 09:00 Helsinki, 20 January 2011 - Ruukki Group Plc, Stock
Exchange Release 

RUUKKI GROUP SELLS FINNISH HOUSE BUILDING BUSINESS TO CAPMAN FOR EUR 76 MILLION

Ruukki Group Plc (“Ruukki”) has signed an agreement to sell its Finnish house
building business, Pohjolan Design-Talo Oy, to funds managed by CapMan. The
total consideration for the shares of the company is approximately EUR 76
million in cash. The final price will be confirmed according to the balance
sheet as of the closing date. Subject to certain conditions precedent being
fulfilled, including the approval of the Finnish Competition Authority, the
transaction is expected to be completed by the end of February 2011. 

As previously disclosed, Ruukki has been evaluating alternative structures for
reorganising its wood processing assets including its house building business.
Based on its evaluation, Ruukki has concluded that the house building business
is no longer a core business as Ruukki's aim is to grow as a vertically
integrated mine-to-metals producer in selected minerals and alloys in selected
geographical areas. Ruukki Group will use the sale proceeds from the
transaction to grow, in line with the chosen strategy, as an integrated
mine-to-metals producer. 

Pohjolan Design-Talo Oy manufactures wood-framed ready-to-move-in houses as
turnkey deliveries to Finnish households. Revenue in January-September 2010 was
EUR 33.1 million with PBT of EUR 6.2 million. The value of the gross assets was
EUR 36.5 million on 30 September 2010. Revenue for financial year 2009 was EUR
31.8 million with PBT of EUR 1.0 million. The value of the gross assets was EUR
21.3 million on 31 December 2009. The company had 154 employees on 31 December
2010. 

In conjunction with the transaction the Pohjolan Design-Talo subgroup will be
recorded as a discontinued operation in Ruukki's 2010 financial statements.
Subject to completing the transaction, Ruukki expects to book a one-time gain
on disposal of approximately EUR 40 million in the first quarter of 2011.
Following the divestment, Ruukki Group's wood processing business area will
comprise the sawmill and pallet businesses which remain under review. 

RUUKKI GROUP PLC
Danko Koncar
Acting Managing Director
For additional information, please contact:

Ruukki Group Plc

Markus Kivimäki, Head of Corporate Affairs, +358 50 3495 687
markus.kivimaki@ruukkigroup.fi
Thomas Hoyer, CFO, +358 45 6700 491
thomas.hoyer@ruukkigroup.fi

Investec Bank Plc

Stephen Cooper, +44 20 7597 5104
stephen.cooper@investec.com


Ruukki Group is a natural resources company, with a wood processing business in
Finland and a mining and minerals business in southern Europe and South Africa.
The Company is listed on NASDAQ OMX Helsinki (RUG1V) and the Main Market of the
London Stock Exchange (RKKI). 
www.ruukkigroup.fi

CapMan is one of the leading alternative asset managers in the Nordic countries
and Russia and manages private equity funds with approximately EUR 3.6 billion
in total capital. CapMan is listed on the Helsinki Stock Exchange. 
www.capman.com