RUUKKI GROUP INCREASING OWNERSHIP IN FURNITURE BUSINESS


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 Ltd’s 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
Group’s strategy to invest in wood-based product areas and
in Russia. Due to demanding situation at Incap Furniture
sharper owner’s 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 Group’s consolidated
revenue by roughly 60 – 70 million euros. Effect on Ruukki
Group’s 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 Group’s 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 Group’s 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
Exchange’s 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