Sale of Ovako Finalized

In July 2006, Rautaruukki Corporation, AB SKF and Wärtsilä Corporation signed an agreement to sell the operating companies owned by Oy Ovako Ab to a company owned by Hombergh Holdings BV shareholders, WP de Pundert Ventures BV and Pampus Industrie Beteiligungen GmbH & Co. KG. The sale has now been closed. The total price for the shares is approximately EUR 660 million, comprising a cash payment at closing of approximately EUR 535 million, a deferred cash payment of EUR 15 million to be paid in July 2008 and an interest-bearing vendor note of EUR 110 million to be paid within 3-6 years of closing. SKF owned 26,5% of Ovako and the tax-free capital gain on the transaction and the share of Oy Ovako Ab¡¯s result generated in 4th quarter 2006 will be reported in SKF's income statement as result of associated companies, and is estimated to be approximately 450 MSEK.