Sales and Profits Rise Significantly
Strategic Acquisition Signed
Amsterdam, 18 March 2008 --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") today announced its preliminary 2007 unaudited results. The Company's revenue increased to $1,155.7 million in the year ended 31 December 2007 from $932.7 million in 2006, a 23.9% increase.

Adjusted net income for the full year 2007 was $51.6 million, or $1.89 per fully diluted share, excluding debt prepayment penalty and non-recurring items. This compared to adjusted net income of $34.9 million or $1.30 per fully diluted share in 2006 excluding non-recurring restructuring and environmental charges. Adjusted EBITDA for 2007 was $119.4 million compared with $72.3 million in 2006, an increase of 65.1%.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said: "I am pleased to report robust earnings for 2007. It was a very good year as we had strong performances in our core advanced materials and engineering systems businesses. We view the results as validation of our strategy to link our businesses to high growth industries. We also strengthened our competitive position in these growth markets in 2007 by strong sales of vacuum furnaces for the solar industry and, most notably in the solar industry at AMG's majority owned Subsidiary, Timminco Limited, with the start-up of our first upgraded metallurgical silicon production line in late December."

RESULTS
(US$ in thousands except per share amounts) 2007 2006
Revenue(1) 1,155,659 932,728
Operating income 85,634 38,083
Net income attributable to shareholders 11,695 4,507
Earnings per Share (fully diluted) 0.43 0.17

(1) 2006 Revenue different from IPO Prospectus due to adjustment at Timminco.

RESULTS - ADJUSTED BASIS
(US$ in thousands except per share amounts) 2007 2006
Adjusted EBITDA (1) 119,369 72,280
Adjusted net income (2) 51,635 34,892
Adjusted earnings per share (fully diluted) (2) 1.89 1.30

(1) Adjusted EBITDA defined as earnings before interest, tax, depreciation, and amortisation and excludes non-recurring items.
(2) Net income attributable to shareholders and EPS adjusted to exclude non-recurring items.

Division Comments:
Advanced Materials Division
Results: Advanced Materials Division
(US$ in thousands) 2007 2006
Revenue 688,039 605,357
Gross profit 104,290 94,193
Operating income 35,876 33,879
Adjusted EBITDA (1) 55,025 46,532
Capital expenditures 16,441 12,462

(1) Adjusted EBITDA defined as earnings before interest, tax, depreciation, and amortisation and excludes non-recurring items.

Revenue for the Advanced Materials Division increased to $688.0 million in the year ended 31 December 2007 from $605.3 million in the year ended 31 December 2006, a 13.7% increase. The success in the Advanced Materials Division was a result of increased sales volume or prices, and in several cases both, for many of the division's key products. The growth in revenue was the result of better pricing in the division's ferronickel-molybdenum, aluminium master alloys, antimony trioxide and tantalum and niobium product lines. The division experienced growth in volume in 2007 versus 2006 in the ferrovanadium, aluminium master alloys and specialty alloys for titanium and super alloys product lines. The Advanced Materials Division also benefited from the acquisition of Forschungsinstitut fuer Nichteisen-Metalle Freiberg GmbH ("FNE"), a state-of-the-art manufacturer of rotatable targets. FNE contributed $18.5 million in revenue. FNE revenue was consolidated into the Advanced Materials Division beginning 1 January 2007.

Liquidity
Proceeds from AMG's initial public offering provided the Company with sufficient funds to repay its high yield debt in its entirety. Proceeds were also used to repay certain other indebtedness. Debt was reduced from $276.8 million at year end 2006 to $138.3 million at year end 2007.

AMG's year end debt to capitalization and debt to EBITDA ratios remain conservative at 31% and 1.16x, respectively. The Company has significant financial flexibility to pursue its strategic growth initiatives using cash on-hand and bank revolver availability.

Dividend
In accordance with AMG's dividend policy no dividend is proposed to be paid for the year ended 31 December 2007.

Full Year Report
The reported numbers are preliminary and unaudited. The audited accounts and Annual report will be published on 28 March 2008. The full report will be made available at www.amg-nv.com in the section "Investor Relations" on 28 March 2008.

Strategic Acquisition
AMG announces that a wholly owned subsidiary has signed a share purchase agreement to acquire a 62.3% interest in Graphit Kropfmuehl AG ("GK"), a company listed on the Frankfurt stock exchange (Frankfurt Stock Exchange: GKR), for consideration of €32.7 million. GK produces silicon metal and mines, processes and refines natural graphite at production sites in Europe, Asia and Africa. The closing of the acquisition is subject to regulatory approval and certain other conditions precedent. AMG intends to finance the acquisition of the shares in GK from available cash resources.

In compliance with German law, AMG's wholly owned subsidiary intends to launch a voluntary public tender offer for the remaining outstanding shares in GK. This offer will be launched subject to obtaining the required regulatory approvals, at the €18.25 per share price agreed upon with the majority shareholders. The transaction is expected to be completed during the second quarter of 2008.

"GK is a traditional producer of high-grade natural graphite. AMG considers natural graphite to be complementary to its specialty metals and vacuum furnace markets. GK is also a producer of silicon metal and, historically, GK and Becancour Silicon Inc., Timinco's silicon metal company, were divisions of the same parent company", said Dr. Heinz Schimmelbusch, CEO of AMG.

Credit Facility Amendment and Capital Increase

As part of the GK acquisition, AMG has recently completed an amendment to its existing credit facility that will increase the Company's financial flexibility to pursue strategic initiatives.

In order to take advantage of opportunities in today's environment, AMG is considering a primary equity offering not to exceed 10% of the Company's outstanding share capital. Any such primary offering would, obviously, be subject to conditions in the equity markets. It is likely that pre-emptive rights of existing shareholders would be excluded if the offering is undertaken.


Conference Call:

AMG will host a conference call to discuss the 2007 financial results and will present the opportunity for questions and answers today, Tuesday 18 March at 4:00 pm CET, 11:00 am EDT. Please be sure to dial in at least 5 minutes early to finalise your registration:

Dial in: UK +44 207 153 2027
US +1 480 629 1990

After the call, a replay of the conference call will be made available on the website.