Significant market potential for Rautaruukki within construction and engineering industries

Rautaruukki Oyj Stock exchange release 1 October 2007

Rautaruukki is holding its annual Capital Markets Day (CMD) for investors and

analysts on 1-2 October 2007 in Moscow, Russia. The CMD focuses on Ruukki's

profitable growth and its significant market potential within metal-based

construction and engineering industries.

Favourable market conditions continue

At the Capital Markets Day, Ruukki's management stated that it expects the good

market conditions in its core market areas and key customer industries to

continue. Rapid growth in construction activity is anticipated, especially in

Central Eastern Europe, Russia and the CIS countries.

Strong growth from construction and engineering customer base

Rautaruukki currently has investment projects worth around EUR 110 million in

organic growth to increase delivery capability to construction customers in

Central Eastern Europe and Russia. These projects are scheduled for completion

in 2009. Ruukki Construction division's net sales are expected to grow

organically more than one and a half times by 2010 from a current figure of

around one billion euros. At the same time, the company will strengthen its

leading position as a solutions supplier for metal-based construction in its

core market areas.

Ruukki is also seeking growth from customers in the lifting, handling and

transportation equipment (LHT) and energy sectors. Ruukki has grown its business

in the LHT industry through acquisitions, which have brought new customers and

improved the company's capability to deliver components and systems. Ruukki

estimates that its target market in this business has grown to around EUR 10

billion. Integration and actions to improve the efficiency of the acquired units

are underway. This will impact negatively on the division's result during the

second half of 2007. However, efficiency measures are expected to have a

positive impact on Ruukki Engineering division's result in 2008.

Special products accounting for growing share of net sales in steel business

In the steel business, Ruukki's focus is on special products. The company plans

to increase the share of special products of Ruukki Metals division's net sales

from a current figure of 24 per cent to 40 per cent by 2010. Special products

also complement the business of Ruukki Construction and Ruukki Engineering.

Ruukki Metals aims to strengthen its market position in its core market areas in

the Nordic countries, the Baltics and in Northwest Russia.

The investment to increase the capacity of high-strength steels at the Raahe

Works in Finland came on stream in August. As a result, delivery volumes of

plate products were down somewhat compared to last year. In addition, Ruukki

Metals' sales are not as high during the third quarter as in other quarters due

to seasonal fluctuations in the division's core market area.

Ruukki's financial targets

Ruukki aims at annual top line growth of over 10 per cent and EBIT of over 12

per cent. The target for the return on capital employed is over 20 per cent and

the gearing ratio less than 60 per cent. The dividend policy is 40-60 per cent

of earnings per share.

Earnings forecast for 2007 unchanged

The company's net sales for 2007 are expected to grow in line with growth

targets set. The company has not revised its earnings forecast for the whole

year and operating profit for 2007 is anticipated to markedly exceed the

comparative figure of EUR 515 million reported in 2006.

Capital Market Day presentation material

The Capital Market Day presentation material in English will be available on the

company's website on 1 October at about 1.30pm Finnish time at

www.ruukki.com>investors

Rautaruukki Corporation

Anne Pirilä, SVP, Corporate Communications and Investor Relations

Rautaruukki 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. Rautaruukki has operations in 23

countries and employs 14,500 people. Net sales in 2006 totalled EUR 3.7 billion.

The company's share is quoted on the OMX Nordic Exchange Helsinki (Rautaruukki

Oyj: RTRKS). The Corporation has used the marketing name Ruukki since 2004.

DISTRIBUTION:

OMX Nordic Exchange, Helsinki

Main media