The Annual General Meeting held in 2003 passed a resolution on a stock option program for management. Stock options are part of the Group's incentive and commitment-building system for key employees, and the objective is to encourage recipients to work in the long term to increase shareholder value. The reward system is based on both Group earnings and relative performance, with rewards geared to accomplishments.

The total amount of share options that may have been issued was 5 100 000, entitling holders of stock options to subscribe for 5 100 000 new shares in the Company in the period 2006–2011. Stock options have been marked 2003A, 2003B and 2003C and have been distributed by decision of the Board of Directors, without additional consideration, in 2004, 2005 and 2006, in deviation from shareholders' pre-emptive rights, to the key persons employed by the Outokumpu Group. In deciding on the number of stock options to be distributed annually in total and to each individual, the Board of Directors assessed the Group's earnings trend and performance by comparing, for example, the trend in earnings per share with the trend for the same key ratio in peer companies. In accordance with the share ownership plan of the program members of the Group Executive Committee are obligated to purchase Outokumpu shares with 10% of the income they obtain from stock options.

The subscription price for shares through the exercise of stock option 2003A is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2003 to February 29, 2004 (EUR 7.25), with stock option 2003B it is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2004 to February 28, 2005 (EUR 10.31) and with stock options 2003C it is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2005 to February 28, 2006 (EUR 10.94). On each dividend record date, the share subscription price of stock options will be reduced by the amount of dividends to be decided after the close of the period for determining the subscription price and prior to share subscription.

Following the subscriptions with 2003 stock options, Outokumpu Oyj’s share capital may be increased by a maximum of eur 2 698 400 and the number of shares by a maximum of 1 587 294. The number of shares that can be subscribed for on the basis of the stock options corresponds to 0.9% of the Company’ shares and voting rights.

Listing timetable of the stock options 2003

Increases in share capital to the trade register and the listing of shares subscribed with 2003 A, B and C stock options on the OMX Nordic Exchange Helsinki will be made according to the following timetable during 2008, 2009 and in 2010: