SOURCE: AMG Advanced Metallurgical Group N.V.

December 19, 2008 02:39 ET

Hydro and AMG enter into agreement to develop new silica and magnesium technology

OSLO, NETHERLANDS and AMSTERDAM, NETHERLANDS--(Marketwire - December 19, 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 Brandtzaeg, 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.

About AMG

AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions of businesses, Advanced Materials and Engineering Systems, and owns majority interests in publicly-listed companies Timminco Limited (TSX: "TIM") and Graphit Kropfmühl AG (Deutsche Börse: GKR.DE).

The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.

The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.

Timminco Limited is a majority controlled, publicly listed subsidiary of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal and magnesium products for use in a broad range of industrial applications.

Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.

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).

For further information please contact:

AMG Advanced Metallurgical Group N.V.   +1 610 975 4901
Jonathan Costello
Director of Corporate Communications
jcostello@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are "forward looking." Forward looking statements include statements concerning AMG's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should," and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based.

Hydro and AMG enter into agreement to develop new silica and magnesium technology: http://hugin.info/138060/R/1278736/285375.pdf

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