Progress in changing business model at Rautaruukki

Rautaruukki Oyj Stock Exchange Release 1 September 2003 at 1 pm

Progress is being made in implementing Rautaruukki's new customer-
oriented business model. As part of the change, the Group has allocated
customer sectors and business operations to its new divisions. Through
the new business model the Group aims to change from being a steel
manufacturer to a customer-focused producer of metal solutions.

In accordance with the new business model, the Group's operations are
being divided into four divisions with customer accountability - Metal
Products, Construction Solutions, Mechanical Engineering Solutions and
Metal Fabrication Solutions - and the Production division. This business
model will increase contact and co-operation between customers and the
Group.

The product groups of the Metal Products division are flat steel
products, tubular products, long steel products, reinforcing and other
metal products. The new division includes the prefabrication of plate and
strip products and bar and reinforcing products in the Nordic countries,
Germany and Poland.

The customer sectors for the Construction Solutions division are
residential and commercial building and infrastructure construction. The
division contains existing steel structure operations in 12 countries.

The customer sectors for the Mechanical Engineering Solutions division
are the marine and offshore, pulp and paper, and lifting and transport
equipment industries. The new division includes business operations for
chrome-plated bar products, as well as engineering operations in Finland
and the production of rolled profiles in Norway.

The customer sectors for the Metal Fabrication Solutions division are the
electronics, automotive, household appliance and light engineering
industries. The division includes tubular products operations in Germany
and the UK, hollow section operations in Finland and Denmark, and
processing operations in Sweden and Russia.

The Production division contains the production of plate and strip
products and cold rolled and coated products in Finland, tubular products
production in the Nordic countries, and the production of bar and
reinforcing products in Sweden and Norway.

Fundia Wire will continue its business operations as a separate unit in
order to complete its current development program.

The names of the Group units will be unified by adopting one name for all
operative business units.

The Group's five divisions have selected most of their key personnel and
the final appointments should be made during September.

The new business model and organisation will be adopted gradually during
the autumn of 2003. Financial reporting for 2003 will still be in
accordance with the old business divisions.


Rautaruukki Oyj

Esko Lukkari
VP, Corporate Communications


ADDITIONAL INFORMATION
Sakari Tamminen, Deputy to the President
tel. +358 9 4177 6222

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