Ruukki Group Oyj - Company Announcement

RUUKKI GROUP'S FURNITURE BUSINESS SEGMENT STARTS CO-DETERMINATION NEGOATIONS IN ITS LESTIJÄRVI FACTORY

Hirviset Oy, a subsidiary of Ruukki Group's furniture business segment, starts  
co-determination negotiations for financial and production-related reasons. All 
of the approximately 60 employees at the Lestijärvi factory will be subject to  
these negotiations.                                                             

The Lestijärvi factory was to major extent destroyed in the fire that took place
at the end of June 2007, after which the production has been continued at       
Lestijärvi factor in small scale only. Majority of Lestijärvi employees are     
currently employed by other factories of Incap Furniture group.                 

The management of Incap Furniture has investigated alternatives to replace the  
destroyed production capacity. Based on financial and production-related reasons
it has been decided that this capacity will be rebuilt at the other factories of
Incap Furniture group. The current small-scale furniture production at          
Lestijärvi is generating losses, and will be fully discontinued.                

All employees of Hirviset Oy will be offered job at the other factories of Incap
Furniture.                                                                      

The insurance compensation processes related to Lestijärvi fire are still       
partially open, but they are expected to be finalised over the coming months.   
The net expected insurance compensation, taking into account the asset          
write-downs, to be shown in the fiscal year 2007 profit and loss account of     
Incap Furniture group amounts to somewhat more than EUR 2 million. The expenses 
to be caused by the factory close-down, potential layoffs or employee           
relocations are not expected to be significant.                                 

RUUKKI GROUP PLC                                                                

MATTI VIKKULA                                                                   
CHIEF EXECUTIVE OFFICER                                                         

Ruukki Group focuses on wood-based industrial business operations. Currently the
group operations are located mainly in Finland, but in future the targeted      
emphasis is principally in Russia. Ruukki Group Plc's share is listed on        
Helsinki Stock Exchange. In the OMX Nordic Exchange the shares of the company   
are traded in the so-called mid cap sector, in the industrials segment.         


For further information, please contact:                                        

Antti Kivimaa                                                                   
Senior Executive Vice President                                                 
Ruukki Group Plc                                                                
Telephone +358 400 501 780                                                      
www.ruukkigroup.fi                                                              

Veli Torvinen                                                                   
Managing Director                                                               
Incap Furniture Oy                                                              
Telephone +358 40 551 0665                                                      
www.incapfurniture.fi