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Press release10.5.2005 1 (2)THE NEW STEEL COMPANY OVAKOSTARTS OPERATIONSThe new European long steel products company began operations on 10 May2005. The company, formed through a merger of Ovako Steel AB, Imatra SteelOy Ab, Fundia Wire Oy Ab, Fundia Special Bar AB and Fundia Bar & WireProcessing AB, has adopted the name Oy Ovako Ab.OVAKO will be a leading European producer of long steel products for the rollingbearing, heavy vehicle, automotive and engineering industries. Production consists oflow alloy and carbon steels in the form of bars, wire rod, tubes, rings, forgings andpre-components.The company will have 18 production sites and several sales companies in Europe andthe USA (Appendix 1). Pro forma net sales in 2004 were EUR 1.3 billion and thecompany will employ 5,200 people. Total steel production is 2 million tonnes.On 22 April 2005 the owners of the new company, Rautaruukki Oyj, AB SKF andWärtsilä Oyj Abp, signed a definitive agreement to combine their long steel productbusinesses into a jointly-owned company. Rautaruukki’s ownership in the newcompany will be 47.0%, SKF’s 26.5% and Wärtsilä’s 26.5%. After receipt of relevantregulatory approvals, the company is now able to begin operations.Individual profit centresThe business is planned to be organised into a bar division, a wire division and furtherprocessing units (Appendix 2). Each division and unit within further processingcomprises its own profit centre, responsible for procurement, production and sales.Sales and marketing are carried out both through direct sales from the plant andthrough a joint network of sales companies.The company’s previous legal and operational structure will continue for the timebeing.Targets, visions and valuesA competitive cost structure is a crucial base for the success of the company. OVAKOwill have the technical possibilities to manufacture products in the unit best suited totheir production, thus maximising technical synergies and minimising overlappingactivities and overcapacity in production.Care for the customer, staff, owners and environment as well as health and safetyissues form an essential part of the corporate culture.Customers will benefit from a wider range of products and services as well as widertechnical skills. OVAKO will produce a wide variety of products at the right qualityand right level of service for the customer.

Press release2 (2)Added value achieved through the further development of steel products and furtherprocessing operations and related services forms an important part of the futureOVAKO.SynergiesThe co-ordination of the previous companies to form OVAKO is expected to createsynergy benefits of EUR 30 to 40 million per year. A preliminary investigation intothe achievement of synergies will begin immediately now that the company has beenfounded. The effects are expected to be achieved through optimisation of productionand economies of scale in distribution, procurement, research and development, salesand administration. The synergies are expected to be fully achieved by the end of2007.AppointmentsJarmo Tonteri has been appointed President and CEO of Oy Ovako Ab and SeppoSahlman as Chief Financial Officer. Bengt Lindahl and Kari Tähtinen have beenappointed Exeecutive Vice Presidents. They will act as senior advisers to the CEO inintegration and synergy projects during the integration period which is estimated tolast until the end of 2006. Anders Moliis-Mellberg has been appointed Senior VicePresident and General Manager of the Wire Division and Kimmo Väkiparta as SeniorVice President and General Manager of the Bar Division. They all form theManagement Group of the new company.Sven Bäckström has been appointed Vice President of Business development andAdministration and Ketil Fjelleng Group Controller. Sture Holm has been appointedCommunications Manager.The new OVAKOThe name OVAKO has existed as a company name and trademark since 1969 and is awell-known in the long steel business both in the Nordic countries and on theEuropean markets. A total 12 of the new company’s 18 production units have at somepoint in their history borne the corporate name Ovako. The name carries an image ofquality in line with the new OVAKO’s business philosophy.A visual image has been created for the new OVAKO (Appendix 3) which will beintroduced in the near future for all applications of the company name and trademark.The units within the new OVAKO will take on names made up of the company namefollowed by the operational location, for example OVAKO Imatra, OVAKOSmedjebacken and OVAKO Hällefors.For further information contact: Jarmo Tonteri, CEO, tel. +46 (0)8 5907 8961E-mail: jarmo.tonteri@ovako.com