AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") expects lower than previously forecasted 2008 earnings due to the severe downturn of global economic activity and resulting lower sales volumes and decreased metals prices in the Advanced Materials Division. The significant drop in metal prices and lower sales volumes in the fourth quarter will result in inventory write downs of approximately $20 million. AMG is lowering its 2008 EBITDA target to $175 - $185 million or 47% - 55% growth over 2007.

AMG is implementing a comprehensive program of countermeasures to mitigate the impact of the downturn. The Advanced Material Division is implementing a reduction in staffing that is envisioned to exceed 10% of its workforce. The company has also suspended all non-essential capital spending programs until economic conditions improve.

"AMG has a debt to EBITDA ratio of less than 1.0x and is reducing working capital balances to generate substantial free cash flow in this challenging economic environment. AMG's management is focused on further improving its balance sheet and its liquidity, which is currently in excess of $150 million." stated Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO.

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