Rautaruukki to divest its Nordic reinforcing steel business

Rautaruukki has signed an agreement to sell its Nordic reinforcing steel business
to BT Norway AS, a 100% subsidiary of Bosian Time S.L. The price for the shares
is EUR 123 million including a pre-closing dividend to Rautaruukki. The price
will be adjusted based on the accounts at closing. The transaction is subject to
relevant regulatory approvals and it is expected to close by June 30, 2006.

The Nordic reinforcing steel business comprises Fundia Armeringsstål AS operating
steel and rolling mills in Mo i Rana, Norway and distribution and manufacturing
service companies Fundia Betoniteräkset Oy in Finland, Fundia Armering AB in
Sweden, Fundia Armering AS in Norway and Fundia Armering A/S in Denmark. The
business has been reported as a part of Ruukki Metals division.

"The divestiture will clarify our corporate structure and will complete the
arrangements started last year to exit from long steel products. Reinforcing
steel operations serve construction industry though there are no substantial
operational synergies in production or sales with our construction business. We
continue to focus on value-added products and solutions in the growing markets of
Central Eastern Europe, Russia and Ukraine", says Mr. Sakari Tamminen, President
and CEO of Rautaruukki Corporation.

In 2005, the Nordic Reinforcing business generated net sales and EBIT of EUR 328
million and EUR 30 million, respectively. It had 689 employees at the end of last
year. The personnel in all companies subject to the transaction will continue at
existing employment terms.

The transaction will be executed as a sale of shares. The price equals
approximately the book value of the divested companies and therefore the effect
of the transaction is expected to be neutral to Rautaruukki's consolidated
financials.

Bosian Time, S.L., is an investment vehicle wholly-owned by Mr. Francesc
Rubiralta Rubió, whose family are the controlling shareholders of Celsa Group, a
group of leading steel long-products producers in Spain, Poland and the UK.
Bosian Time is independently incorporated and separately financed from the Celsa
Group.

Further information:
Sakari Tamminen, President and CEO, tel. +358 20 592 9075
Mikko Hietanen, CFO, tel. +358 20 592 9030

Rautaruukki Corporation

Taina Kyllönen
VP, Corporate Communications

Ruukki supplies metal-based components, systems and integrated systems to the
construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Ruukki has operations in 23 countries
and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion. The
company's share is quoted on the Helsinki Exchanges (Rautaruukki Corporation:
RTRKS). The Corporation has used the marketing name Ruukki since 2004.



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