Rautaruukki has signed an agreement to sell its Nordic reinforcing steel business to BT Norway AS, a 100% subsidiary of Bosian Time SL. The price for the shares is Euro 123 million including a pre closing dividend to Rautaruukki. The price will be adjusted based on the accounts at closing. The transaction will be executed as a sale of shares. The price equals approximately the book value of the divested companies and therefore the effect of the transaction is expected to be neutral to Rautaruukki's consolidated financials. The transaction is subject to relevant regulatory approvals and it is expected to close by June 30, 2006.

The Nordic reinforcing steel business comprises Fundia Armeringsstål AS operating steel and rolling mills in Mo Rana, Norway and distribution and manufacturing service companies Fundia Betoniteräkset Oy in Finland, Fundia Armering AB in Sweden, Fundia Armering AS in Norway and Fundia Armering A/S in Denmark. The business has been reported as a part of Ruukki Metals division. In 2005, the Nordic Reinforcing business generated net sales and EBIT of Euro 328 million and Euro 30 million respectively.

Mr Sakari Tamminen President and CEO of Rautaruukki Corporation said "The divestiture will clarify our corporate structure and will complete the arrangements started last year to exit from long steel products. Reinforcing steel operations serve construction industry though there are no substantial operational synergies in production or sales with our construction business. We continue to focus on value-added products and solutions in the growing markets of Central Eastern Europe, Russia and Ukraine."

Bosian Time SL, is an investment vehicle wholly owned by Mr Francesc Rubiralta Rubió, whose family are the controlling shareholders of Celsa Group, a group of leading steel long products producers in Spain, Poland and the UK. Bosian Time is independently incorporated and separately financed from the Celsa Group.