Personnel Negotiations at Rautaruukki Steel completed

Rautaruukki Oyj Stock Exchange Release 7 January 2003 at 12.20 pm

Personnel negotiations were started at a number of Rautaruukki Group sites
at the end of 2002. Their purpose was to reduce the Group's fixed costs by
EUR 50 million by the end of 2003. Personnel costs were to contribute ¾ of
the total target, which meant a reduction of altogether 670 employees at
Rautaruukki Steel, Metform and the Steel Service Division in Finland and
Norway.

The completion of personnel negotiations at Rautaruukki Steel's works in
Raahe, Hämeenlinna and Kankaanpää today, 7 January 2003, concludes the
most important part of these negotiations. Negotiations at Steel's Halikko
Works were completed earlier. Negotiations concerning the Steel Service
Division's personnel have also been concluded.

Rautaruukki Steel's negotiations resulted in the formation of target
organisations which would mean the termination of 565 employment
contracts. Almost 100 of these will be achieved by terminating short-term
contracts or through natural loss. The remainder will mean redundancies
although almost 400 such employees will have the opportunity to take
unemployment pension. The action necessary to set up the target
organisations will be taken in the coming weeks.

As a result of these negotiations Rautaruukki Steel will achieve an
estimated annual saving of EUR 30 million in personnel costs, the full
impact of which will be evident from the beginning of 2004. Rautaruukki
Steel's personnel reductions are expected to generate one-time wage and
pension costs totalling EUR 20-23 million during the period of notice,
most of which will be entered as a provision in the 2002 accounts
depending on the implementation schedule.

Negotiations affecting personnel at Rautaruukki Metform are expected to be
completed in the next few days.

Rautaruukki Oyj

Esko Lukkari
VP, Corporate Communications

ADDITIONAL INFORMATION
Lauri Rautala, Senior VP, Rautaruukki Steel, tel. +358 8 849 2210
Esko Lukkari, VP, Corporate Communications, tel. +358 9 4177 6221 or +358
40 588 1625

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