Ruukki Group Plc Stock Exchange Release, 6 February 2007 at 09:40 a.m. RUUKKI GROUP INCREASING OWNERSHIP IN FURNITURE BUSINESS Ruukki Group has agreed to increase its ownership interest in Incap Furniture Ltd from 47.1 % to approximately 70.3 % through a directed share issue. The current minority shareholders remain the same and their ownership after the share issue will be approximately the following: Finnish Industry Investment Ltd 17 %, Teknoventure Ltd and Jokilaaksojen Rahastot I together totally 9 % and Incap Furniture management 3 %. The related refinancing package by owners and financial institution will strengthen Incap Furniture Ltds financial position by roughly three million euros in total. If all stock options issued by Incap Furniture will be exercised, Ruukki Group ownership dilutes to approximately 65 percent. Ruukki Group cash consideration in the restructuring package totals 0.9 million euros. This ongoing transaction will in part continue Ruukki Groups strategy to invest in wood-based product areas and in Russia. Due to demanding situation at Incap Furniture sharper owners leadership role was thought to be vital, and therefore Ruukki Group decided to carry out the agreed restructuring. Incap Furniture Ltd currently produces wooden furniture and wood-based combi products mainly delivered to export markets. According to preliminary financial statements, Incap Furniture Ltd consolidated revenue in fiscal year 2006 amounted to 47 million euros, and respectively, EBIT was approximately 5 million euros. The interest-bearing debt totalled some 21 million euros at the year-end. The heavy losses in 2006 have been caused mainly by increasing raw material prices, by changes in product range as well as by inefficiency in production. Moreover, during 2006 there were additional one-off costs related to site closedowns and employee layoffs. During the current year the profitability of furniture production is targeted to increase through new product introductions and new customers, of which LEGO is considerable, and by productivity gains. The measures carried out in 2006, e.g. closures of factories, will be shown in 2007 profitability. Ruukki Group will develop raw material purchase processes, and possibly to start furniture component production in Russia. Furthermore, Incap Furniture has signed a letter of intent with Stora Enso Timber related to planned glued board production in Impilahti in Russia. Ruukki Group will consolidate Incap Furniture as a group company presumably from March 2007 onwards. This is estimated to increase 2007 Ruukki Groups consolidated revenue by roughly 60 70 million euros. Effect on Ruukki Groups EBIT is expected to be positive in financial year 2008 at the latest. Relative profitability (EBIT margin) is expected to drop somewhat due to Incap Furniture consolidation. Ruukki Groups consolidated balance sheet will be affected to a considerable extent. Both tangible fixed assets and interest-bearing debt, both short-term and long-term, will be clearly increased. During the fiscal year 2006 Incap Furniture was treated in Ruukki Groups IFRS reporting as an affiliated company during 1.2 30.4. and 1.10. 31.12., and as a group company, through potential control, within 1.5. 30.9. The business climate is presumed to be challenging in the future, but the done and started restructuring provide a good basis for further operations. Incap Furniture board of directors will be changed in the near future. All agreements and needed decisions are thought to be finalised by the end of February. RUUKKI GROUP PLC Antti Kivimaa Chief Executive Officer Ruukki Group is a multi-sector industrial group having mainly majority ownership interests in various small and medium-sized companies in e.g. house building, social services as well as wood processing and metal industries. Ruukki Group share (RUG1V) is listed on OMX Nordic Exchanges so-called small cap category. For further information, please contact: Antti Kivimaa Chief Executive Officer Ruukki Group Plc Telephone +358 400 501 780 www.ruukkigroup.fi