SHARE-BASED INCENTIVE PROGRAMME FOR 2006-2010 ? EARNING PERIOD 2006-2008

OUTOKUMPU OYJ STOCK EXCHANGE RELEASE FEBRUARY 2, 2006 AT 2.00 PM

SHARE-BASED INCENTIVE PROGRAMME FOR 2006-2010 – EARNING PERIOD
2006-2008
       
Outokumpu’s Board of Directors has approved a share-based
incentive program as part of the key employee incentive and
commitment system of the company. The share incentive program will
last five years, comprising three earning periods of three
calendar years each. The earning periods commence on January 1,
2006, January 1, 2007 and January 1, 2008. The Board of Directors
decides on the persons entitled to participate in the program for
each earning period. Today 132 people have been confirmed to be in
the scope of the program for the earning period 2006-2008.
       
The objective of the share-based incentive program is to reward
for good performance which supports the Company’s strategy and at
the same time to direct the management’s attention to increasing
the company’s shareholder value over a longer period of time. The
program offers a possibility to receive Outokumpu shares and cash
(equaling to the amount of taxes of the total reward) as an
incentive reward, if the targets set by the Board for each earning
period are achieved. The aggregate number of shares to be
distributed for each of the earning periods cannot exceed 500 000
shares. In accordance with targets confirmed for the earning
period 2006-2008 the reward is based on relative development of
TSR (50 % of the maximum reward) and achieving targets set for
Operational Excellence programs (50 % of the maximum reward).
       
According to the share ownership plan of the Outokumpu Group the
members of the Group Executive Committee are obliged to own
Outokumpu shares received under incentive programmes for the value
of their annual gross base salary.

OUTOKUMPU OYJ
Corporate Management

Eero Mustala
Senior Vice President - Corporate Communications
Tel. +358 9 421 2435, Mobile +358 40 504 5146
E-mail: eero.mustala@outokumpu.com