INTERIM REPORT

20 October 2011 at 9.00 am EET

Third-quarter 2011 highlights

- Underlying operational result some EUR -15 million (II/2011: EUR -5 million).

- Operating loss EUR -53 million (II/2011: EUR -169 million) including raw material-related inventory losses of some EUR -38 million (II/2011: some EUR -26 million), no non-recurring items (II/2011: EUR -138 million).

- Financial expenses of EUR 77 million reported under net financial income and expenses as a result of the fair valuation of the Group's stake in Talvivaara Sotkamo.

- Very strong operational cash flow of EUR 282 million (II/2011: EUR -66 million).

- Deliveries at 340 000 tonnes (II/2011: 348 000 tonnes).

- Change in corporate organisation and Group Executive Committee, job reductions planned.

The underlying operational result in the third quarter declined to EUR -15 million. The negative impact of somewhat lower base prices and a somewhat weaker mix was partly offset by a positive impact from metal hedging activities. Operating loss in the third quarter was EUR -53 million. Demand in Europe was adversely affected by normal seasonality and Outokumpu held its annual maintenance breaks at Group sites. Net cash from operating activities in the third quarter improved significantly and totalled EUR 282 million. The main reasons for

the very strong cash flow were the reduction in working capital which resulted from lower metal prices and inventories being at lower levels than in the second quarter. EUR 331 million of cash was released from working in the third quarter.

SHORT-TERM OUTLOOK

During the summer, demand for standard grades of stainless steel in Europe was impacted by the normal seasonal slowdown. Following the summer period, both global economic uncertainty and lower metal prices weakened underlying demand for stainless steel. Distributors are currently hesitant about placing orders. Inventories among distributors are however lower than normal. Lead times for standard grades continue to be 6-8 weeks.

Due to the weakened demand for stainless, Outokumpu expects the Group's delivery volumes in the fourth quarter of 2011 to be below the level achieved in the third quarter. As the conditions in the stainless markets softened, base prices declined towards the end of the third quarter but seem to have stabilised currently. Outokumpu expects its average base prices in the fourth quarter to be somewhat lower than the average for the third quarter.

Lower delivery volumes and lower average base prices are expected to lead to a somewhat negative underlying operational result^*) in the fourth quarter. At current metal prices, declined metal prices are expected to result in raw material-related inventory losses resulting in a clearly negative operating result for the fourth quarter. In addition, Outokumpu's operating result in the fourth quarter is expected to be affected by the Group's planned cost saving and restructuring programmes.

^*) Underlying operational result= Operating profit/loss excluding raw material-related inventory gains/losses and non-recurring items.

CEO Mika Seitovirta:

"Since the global economic sentiment has worsened after the summer and the stainless markets consequently have weakened, it is of extreme importance for us to take actions to improve our financial performance in every part of the company. In the current environment we will keep strong focus on continuing to improve our cash flow. Therefore we have announced new restructuring and cost cutting plans and introduced a new organisation structure."

The attachments present the Management analysis for the third quarter operating result and the Interim review by the Board of Directors for January-September 2011, the accounts and notes to the interim accounts. This report is unaudited.

For further information, please contact:

Ingela Ulfves, VP - Investor Relations and Financial Communications

tel. +358 9 421 2438, mobile +358 40 515 1531

ingela.ulfves@outokumpu.com

Esa Lager, CFO

tel. + 358 9 421 2516

esa.lager@outokumpu.com

News conference and live webcast today at 1.00 pm

A combined news conference, conference call and live webcast concerning the third-quarter 2011 financial results will be held on 20 October at 1.00 pm EET (6.00 am US EST, 11.00 am UK time, 12.00 pm CET) at Restaurant Bank, meeting rooms 12-14, address Unioninkatu 20, 00130 Helsinki, Finland.

To participate via a conference call, please dial in 5-10 minutes before the beginning of the event:

UK +44 203 043 2436, US & Canada +1 866 458 4087, Sweden +46 8 505 598 53

Password Outokumpu

The news conference can be viewed live via Internet at http://www.outokumpu.com/Investors/Webcasts. The stock exchange release and the presentation material will be available before the news conference at www.outokumpu.com/Investors.

An on-demand webcast of the news conference will be available as of 20 October 2011 at around 3.00 pm EET at www.outokumpu.com/Investors/Webcasts.

OUTOKUMPU OYJ