Key Highlights
Q1 2010 revenue was $235.8 million, an increase of 9% compared to Q1 2009
Q1 2010 EBITDA[1] was 22.0 million, an increase of 39% compared to Q1 2009
EPS on a fully diluted basis was breakeven compared to Q1 2009 of ($0.57) EPS. Adjusted EPS, excluding non-recurring charges, on a fully diluted basis was $0.11 in the first quarter 2010
The Advanced Materials Division continued its recovery; first quarter 2010 revenue was $140.5 million; EBITDA was $8.5 million
The Engineering Systems Division's first quarter 2010 revenue was $65.3 million; EBITDA was $12.1 million
Graphit Kropfmühl's first quarter revenue was $29.9 million; EBITDA was $1.5 million
As of March 31, 2010 cash on hand was $98.9 million, net debt was $104.1 million; Q1 2010 free cash flow[2] was $4.1 million

[1] EBITDA is defined as earnings before interest, tax, depreciation and amortization and excludes nonrecurring items
[2] Free cash flow is defined as EBITDA less change in working capital and maintenance capital expenditures

Amsterdam, 12 May 2010 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported first quarter 2010 revenue increased 9% to $235.8 million from $215.7 million in the first quarter 2009.

Net income attributable to shareholders for the first quarter 2010 was breakeven, compared to net loss of ($15.4) million or ($0.57) per fully diluted share for the first quarter 2009. Excluding non-recurring charges and Timminco, which was deconsolidated as of September 30, 2009, AMG's net income attributable to shareholders for the first quarter 2010 was $3.1 million, or $0.11 per fully diluted share. EBITDA increased 39% to $22.0 million in the first quarter 2010 compared with $15.9 million in the first quarter 2009.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "The first quarter 2010 continued the upward trend that began in late 2009. Demand has begun to return in Advanced Materials, as both volumes and prices increased. Engineering Systems remained challenged by low levels of order intake; however, requests for quotes have increased. Graphit Kropfmühl increased revenues and earnings, driven by end market demand. AMG is guardedly optimistic that the global economy will continue to improve, and our portfolio of metals technologies is well positioned to benefit from this trend in 2010

Key Figures
In 000's US Dollar Q1'10 Q1'09 Change
Revenue $235,793 $215,719 9%
Gross profit 42,584 33,860 26%
Gross margin 18.1% 15.7%
Operating income 11,787 6,310 87%
Operating margin 5.0% 2.9%
Net loss attributable to shareholders (64) (15,394) N/A
EPS- Fully diluted 0.00 (0.57) N/A
Adjusted EPS- Fully diluted[1] 0.11 (0.22) N/A
EBIT[1] 15,866 10,963 45%
EBITDA[1][2] 22,047 15,892 39%
EBITDA margin 9.4% 7.4%
Note:
[1] Adjusted for discontinued operations and equity accounting treatment for AMG's investment in Timminco
[2] EBITDA is defined as earnings before interest, tax, depreciation and amortization and excludes nonrecurring items

Operational Review
Advanced Materials Division
Q1'10 Q1'09 Change
Revenue $140,534 $98,160 43%
Gross margin 21,136 2,891 631%
Operating income (loss) 4,301 (12,990) N/A
EBITDA 8,499 (8,371) N/A
Capital expenditures 3,321 4,860 (32%)

Demand improved for most of the Advanced Materials specialty metals during the first quarter 2010. Prices for ferrovanadium, and specialty alloys for aerospace both increased substantially during the first quarter. Revenue increased by $42.4 million or 43%, while gross margin increased by $18.2 million or 631%.

Gross margin percentage increased from 3% of revenue in the first quarter of 2009 to 15% in first quarter of 2010. This was due to a sharp increase in end product prices, particularly in ferrovanadium. Ferrovanadium reference prices increased 18%, with most of the increase coming at the end of the quarter, while volumes were essentially unchanged compared to the first quarter 2009. Vanadium chemicals, ferronickel-molybdenum, ferrotitanium and antimony products also benefitted from increasing end market prices. AMG benefitted from a $3.6 million mark to market write up in inventory during the first quarter 2010 compared to a $3.9 million mark to market write down in inventory in the same period in the prior year. Even more significant was the general improvement in volumes during the quarter.

The first quarter 2010 EBITDA increased by $16.9 million due to the increase in revenue and gross margin, which were slightly offset by a 5% increase in SG&A.
Capital expenditures were $3.3 million for the quarter, 32% less than the comparable period in 2009. The primary growth capital investment made in the first quarter was for the expansion of the ferrovanadium logistics facility.

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AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).