The fifth-seeded Rusedski defeated the seventh-seeded Kiefer 6-7 (5-7), 2-6, 6-3, 7-5, 6-4 in a match that lasted 3 1/2 hours.
Kiefer began by winning the first two sets, but the match changed for the 22-year-old German.
Despite the loss, Kiefer was satisfied with his week's performance which put him into the top ten of the ATP rankings.
"It was really a great week. It is something special that I have made it into the top 10," Kiefer said. "A win here would have been the icing on the cake."
In a carbon copy of his semifinal match, the 22-year old German fended off a string of break points in the first set to force a tiebreaker, then closed it out with a 7-6 (7-5) win to take the lead. He breezed to an easy second-set victory.
Kiefer appeared tired in the third set, repeatedly failing to get his first service in play.
Rusedski broke Kiefer in the fourth game and went on to win 6-3.
Rusedski's persistence began to pay off in the fourth set. The match turned around after he broke in the seventh game of the fourth set.
Both players were visibly tired, but Rusedski continued to pull out crucial big serves at the right moment. Rusedski seized a break chance and went on to serve out the set.
"Sometimes you have to play a bit ugly to win, because he's a very talented player," Rusedski commented.
Rusedski broke Kiefer to open the final set to keep the momentum.
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