Winter Drapes

Norsk Hydro: Results rise further on higher aluminium prices and solid sales

Market Wire, July, 2010

* NOK 1,110 million in second quarter underlying EBIT

* Solid demand in seasonally strong quarter

* Upstream improves on higher aluminium prices and alumina performance

* Downstream rises further with strong sales, firm margins and improved
Productivity

* Energy falls on significantly lower power production

* Qatalum ramp-up on schedule for full output in Q4, 48 percent of cells
in
operation end-Q2

* Takeover of Vale’s aluminium business on track for Q4 closing

* NOK 10 billion rights offering successfully completed

* 2010 outlook for growth in Hydro’s main markets unchanged at 12 percent

Hydro had underlying earnings before financial items and tax of NOK 1,110
million in the second quarter, rising from NOK 688 million in the first
quarter.
Higher realized aluminium prices, continued improvements in alumina
operations
and higher downstream sales lifted underlying results for the quarter.

“The solid results are attributable to higher sales volumes, combined with
firm
margins and tight cost control in a seasonally strong quarter. This quarter
confirms Hydro as a strong market performer,” Hydro’s President and Chief
Executive Officer Svein Richard Brandtzg said.

“Full output at Qatalum and closing of the takeover of Vale’s aluminium
business
are expected in the fourth quarter. Combined, these moves will strengthen
Hydro
in all parts of the value chain and make us an even more robust player in
an
industry poised for growth,” said Brandtzg.

Underlying results for Primary Metal improved during the quarter compared
to the
first quarter, due to higher realized aluminium prices. Hydro’s alumina and
raw
materials business showed improved underlying results, mainly due to the
Alunorte alumina refinery which posted higher sales volumes as a result of
more
stable production. Variable costs increased for Hydro’s smelter operations
during the quarter.

Metal Markets’ underlying results declined in the second quarter, mainly
due to
an increase in negative currency effects as a result of the weakening Euro
against the US dollar. Capacity utilization and margins remained firm in
the
quarter despite increased raw material costs.

Underlying EBIT for Rolled Products increased substantially compared to the
first quarter, mainly driven by higher sales volumes
aluminium doors

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