RAUTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 22 August 2008 at 10.00 am NOTICE OF A SUBSIDIARY MERGER TO RAUTE CORPORATION'S SHAREHOLDERS Raute Corporation (Business ID 0149072-6) and its wholly-owned subsidiary Mecano Group Oy (Business ID 0882659-5) signed draft terms of merger on 30 June 2008 according to which Mecano Group Oy will merge into its parent company Raute Corporation. The draft terms of merger were entered in the Finnish Trade Register on 13 August 2008. According to the draft terms of merger, Mecano Group Oy's assets and liabilities will be transferred to the parent company Raute Corporation without liquidation. No merger consideration will be paid for the merger, as the parent company owns all of the shares of the merging company. The merger will not cause any amendments to Raute Corporation's Articles of Association. The reasons for the merger are the improvement of operational efficiency, clarification of the company structure and improvement of cost-efficiency. The intended date of registration of the implementation of the merger is 31 December 2008. The draft terms of merger, including appendices and the documents defined in the Limited Liability Companies Act (624/2006), Chapter 16, section 11, are available to the shareholders as from today at the head office of Raute Corporation at Rautetie 2, Nastola, Finland. Copies of these documents will be sent to shareholders on request. Orders can be placed by phone at +358 3 829 3302/Sirpa Väänänen or by email to sirpa.vaananen@raute.com. If Raute Corporation's shareholders who hold altogether at least five (5) percent of the company shares within one month of the publication of this notice demand in writing that the decision on the merger be made by the General Meeting, an extraordinary General Meeting will be convened in accordance with the Limited Liability Companies Act and the Articles of Association. The demand shall be submitted in writing to Raute Corporation to the address Raute Corporation/Sirpa Väänänen, P.O. Box 69, FI-15551 Nastola, Finland. Lahti, 22 August 2008 RAUTE CORPORATION Board of Directors FURTHER INFORMATION: Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387 DISTRIBUTION: OMX Nordic Exchange, Helsinki, main media, www.raute.com