Raute - Company Announcement

RAUTE RECEIVES AN EUR 6,7 MILLION ORDER FROM SWEDEN

RAUTE RECEIVES AN EUR 6,7 MILLION ORDER FROM SWEDEN

Raute Corporation has received an EUR 6,7 million order for veneer technology   
from the Swedish company Plyfa Plywood AB. The order includes a log handling    
line, peeling line and drying line for the production of parquet base layer     
veneer for Plyfa's Hassela mill. The machinery deliveries will take place during
the summer of 2008.                                                             

Plyfa Plywood AB is a Swedish company engaged in the production of veneer and   
plywood. Plyfa has started a major investment project with the target of        
modernizing its production process and the order received by Raute is part of   
the project. By developing the production process at the Hassela mill the       
company seeks a notable capacity improvement. After the investment project the  
company's production capacity rises to 80 000 m3 veneer and plywood products.   

The veneer and plywood industry in Sweden is quite small in spite the good      
possibilities offered by the raw material resources. Plyfa's investment project 
is the most significant investment in the industry in years. It is proof of both
Raute's strong market position and the development possibilities of the Swedish 
wood products industry.                                                         

The order has no influence on Raute's earlier published net sales and operating 
profit outlook estimates for 2007. The order strengthens the order book in early
2008.                                                                           

RAUTE CORPORATION                                                               

Tapani Kiiski                                                                   
President and CEO                                                               


FURTHER INFORMATION:                                                            
Mr. Tapani Kiiski, President and CEO,  Raute Corporation,                       
+358 3 829 3560, mobile phone  +358 400 814 148                                 

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 the 
world market leader as a supplier of mill-scale projects to these customer      
industries. The full-service concept also includes technology services, with    
which Raute supports its customers throughout the entire life cycle of their    
investment. 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 Iyväskylä and Kajaani, Finland. Net sales in 2006
were EUR 106 million and the number of personnel 540. More information on the   
company can be found at www.raute.com.                                          

DISTRIBUTION:                                                                   
OMX Nordic Exchange in Helsinki, Main media, www.raute.com