Oslo and Amsterdam, 19 December 2008 --- Norsk Hydro ASA ("Hydro") and AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") have entered into an agreement to develop new technology for the production of silica and magnesium.

AMG and Hydro have formed SilMag DA ("SilMag"), a 50/50 joint venture, to further develop technology for the low cost production of magnesium and silica. SilMag will establish a pilot plant in Porsgrunn, Norway in early 2009. Upon completion of the pilot program, AMG and Hydro will jointly evaluate the decision to invest in a commercial scale production facility.

"This new technology may make it possible to produce magnesium at a significantly lower cost than current production methods and may limit the environmental issues associated with conventional production processes. In addition, this technology will also produce silica for various markets." stated Executive Vice President Svein Richard Brandtzæg, responsible for technology development in Hydro. A secure, long-term supply of magnesium is important for Hydro as it uses a significant amount of magnesium for its aluminium alloying operations.

"Development of this specialty metals technology is consistent with AMG's strategy to focus on metallurgical innovations related to energy conservation" stated Eric Jackson, President of AMG's Advanced Materials Division.

About Hydro
Norsk Hydro ASA is a Fortune Global 500 supplier of aluminium and aluminium products. Based in Norway, the company employs 23,000 people in 40 countries and has activities on all continents.