When Outokumpu Oyj published their year-end results on 21 February, they also announced the first step in reducing their shareholding in AvestaPolarit. According to the Shareholder agreement in the merger between Avesta Sheffield and Outokumpu Steel, it was agreed that Outokumpu should reduce their shareholding in AvestaPolarit to 40% or less before March 2004.

Outokumpu has now proposed to the AGM that of their dividend of 0.61 cent per share approximately 70% will be distributed to their shareholders as shares in AvestaPolarit. This will reduce Outokumpu's shareholding in AvestaPolarit from today's 55.3% to 52% and increase liquidity in the AvestaPolarit share.

Outokumpu's announcement is as follows:

"The Board of Directors proposes to the Annual General Meeting that a
dividend be paid from the profits of the financial year ended on December
31, 2001, comprising a cash dividend of EUR 0.18 per share and shares in
AvestaPolarit Oyj Abp with a counter value of EUR 0.43 each, and that any
remaining distributable funds be allocated to retained earnings. The
aggregate counter value of the dividend will be EUR 75 209 370.50, i.e. EUR
0.61 per share. The Group's earnings per share for the financial year 2001
amounted to EUR 0.61, thus yielding a 100% payout ratio.

For the purposes of this dividend proposal, the shares of AvestaPolarit Oyj
Abp have been initially valued at EUR 4.88 per share, which equals the
average price quoted for the said shares on the Helsinki Exchanges on
February 19, 2002 weighted by the volume of trade in the same shares during
the same day, less the dividend proposed by the Board of Directors of
AvestaPolarit Oyj Abp to be paid for the financial year 2001. On the basis
of this valuation, the dividend of the Company is estimated to require a
distribution of approximately 10.5 million shares of AvestaPolarit Oyj Abp,
which represents approximately 3% of the total number of shares issued by
AvestaPolarit Oyj Abp. The actual number of shares to be distributed will
be determined on the basis of the average price quoted for the
AvestaPolarit Oyj Abp shares on the Helsinki Exchanges on April 25, 2002,
subject to the limitation that no more than 18 000 000 AvestaPolarit Oyj
Abp shares can be distributed in payment of this particular dividend. In
the event that this aggregate number of shares does not suffice for the
payment of the dividend, the remaining portion shall be paid in cash."

To get the complete release, go to www.outokumpu.com