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EARNINGS CRITERIA FOR THE OUTOKUMPU STOC

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OUTOKUMPU OYJ    STOCK EXCHANGE RELEASE June 12, 2003 at 3.00 pm


EARNINGS CRITERIA FOR THE OUTOKUMPU STOCK OPTIONS SET FOR 2003

The Board of Directors of Outokumpu Oyj has decided the
earnings criteria on the basis of which stock options 2003A
will be distributed to 118 key persons of the Outokumpu Group
in spring 2004. The earnings criteria comprise the Group’s
earnings per share (EPS), share price development, and
additionally gearing for the Group Executive Committee members.

Based on EPS in 2003 no more than 50% of the maximum number of
stock options can be distributed for the Group Executive
Committee members. For other key persons, no more than 75% of
the maximum number of stock options can be distributed based on
EPS. The Board of Directors will, when evaluating the ground
for distribution, consider the development of EPS of the
reference companies in the industry, exceptional circumstances
and effect of any potential company acquisition or other
transaction or other significant change, on the Outokumpu
Group’s EPS.

One-fourth of the maximum number of stock options can be
distributed based on Outokumpu share price development, if it
outperforms those of the reference companies in the industry.

In addition, the number of stock options to be distributed to
the Group Executive Committee member is linked to the Group’s
gearing. No more than 25% of the maximum number of stock
options can be distributed based on gearing.

Furthermore, a share ownership plan is incorporated to the 2003
stock option plan, in which the Group Executive Committee
members are obliged to acquire the company’s shares with 10% of
the income gained from the stock options.

A total maximum of 1 700 000 Outokumpu Oyj shares can be
subscribed for with the 2003A stock options between September
1, 2006 and March 1, 2009. Subscription price for a stock
option will be the trading volume weighted average of the
Outokumpu share on the Helsinki Exchanges between December 1,
2003 and February 29, 2004.

The Annual General Meeting of shareholders approved the issue
of stock options on April 3, 2003. The terms and conditions of
the stock options were published in a stock exchange release on
that date. The stock options are intended to form a part of the
incentive and commitment program for the key personnel with a
purpose to encourage them to work on a long-term basis to
increase shareholder value.


OUTOKUMPU OYJ
Corporate Management

Johanna Sintonen
Manager - Investor and Media Relations
tel. + 358 9 421 2438, mobile +358 40 530 0778, fax + 358 9 421
2429
e-mail: johanna.sintonen@outokumpu.com
www.outokumpu.com

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