Rautaruukki Oyj Stock exchange release 6 February 2008 RUUKKI ENGINEERING LAUNCHES PROFITABILITY IMPROVEMENT PROGRAMME Rautaruukki's engineering division, Ruukki Engineering has launched a programme to improve productivity and profitability across the division. The actions are scheduled for 2008 and aim at improving the division's operating profit by EUR 20 million in 2008. In the same context, Ruukki Engineering is to adopt a new organisation and management model to support divisional growth and profitability. The new management model clarifies financial and operational responsibilities and improves the use of resources. The organisational changes are effective immediately. Productivity is to be improved by boosting production and increasing capacity to meet growing demand and the division's broader customer base. Existing production capacity limits the division's growth, especially in the lifting, handling and transportation equipment industry and wind energy customer segments. At the same time, underperforming products are to be dropped from the product range. Integration of acquisitions completed last year is currently under way within the division and will be concluded during 2008. One of the near-term aims to considerably improve productivity in the units acquired is to remove bottlenecks in production and to shorten lead times. Likewise, delivery reliability is to be im-proved by developing production load planning. The division will cut overheads to lighten the cost structure. Cost savings will also be achieved by developing the subcontractor network and centralising sourcing. Cutting costs and improving productivity are expected to improve the division's 2008 operating profit by around EUR 20 million compared with the previous year. In 2007, Ruukki Engineering reported an operating profit of EUR 96 million, or 14 per cent of the division's net sales. "Demand is very good, especially in the lifting, handling and transportation equipment and in the energy industries. We are able to grow the division's net sales and clearly improve our profitability by considerably intensifying our existing engineering production and ways of working and by investing in new production capacity," says Tommi Matomäki, President, Ruukki Engineering. Ruukki Engineering has operations in 7 countries and employs around 3,000 people. For further information, please contact: Tommi Matomäki, President, Ruukki Engineering, tel. +358 20 592 8809 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 24 countries and employs 14,600 people. Net sales in 2006 totalled EUR 3.9 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. www.ruukki.com DISTRIBUTION OMX Nordic Exchange Helsinki Main media www.ruukki.com