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Ruukki Group Oyj Stock Exchange Release
December 22, 2006

Ruukki Group signs agreement of utilisation of forest resources in Russia

Ruukki Group's Russian subsidiary OOO Ruukki Kostroma has agreed with the Kostroma Oblast of Russian Federation on utilisation of forest resources in Kostroma. According to the agreements Ruukki Kostroma is entitled to annual harvests of 2.5 – 3.1 million cubic metres during 49-year lease period. In the assessment of the wood resources of the harvest areas Pöyry Forest Industry Consulting has consulted Ruukki.

In the first phase of forest resources utilisation, Ruukki Kostroma invests in a saw mill, which uses pine and spruce. Moreover, there are plans to investigate opportunities to make further processed timber products at the saw mill. Saw mill annual production capacity is expected to be 300.000 m3, and its production is targeted to start during 2008.

In the second phase, Ruukki Kostroma invests into CTMP (chemi-thermo-mechanical pulp) mill. Pulp mill production annual capacity will be in the range of 300.000 – 500.000 tonnes. Pulp production is expected to be started 2009 – 2010.

Both sawnwood products and pulp products will be sold primarily to the international markets.

Total capital expenditures are estimated to be up to 500 million euros during 4 – 5 years period. Negotiations with international financial and ownership partners have been started.

The agreements concerning the forest resources utilisation and the related investments will specified during the first half of 2007. After all details of the agreements have been specified, the agreements can be ratified within Kostroma Oblast, and thereafter the agreements will become binding.

About Ruukki Group
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 socalled small cap –category.

Further information:
Antti Kivimaa
Managing Director
Ruukki Group Oyj
Tel. +358 400 501 780

www.ruukkigroup.fi


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