Hydro sells Production Partner and Production Services to Bilfinger Berger

Tuesday, 19. February 2008 08:24

Oslo (2008-02-19): Bilfinger Berger Industrial Services AG (BIS) has
acquired Hydro Production Partner (HPP) and Hydro Production Services
(PT). The sales agreement was signed in Porsgrunn on Monday evening.
The two companies employ roughly 2,200 people (including contractual
staff) within the areas of industrial maintenance, projects and
service in Norway, Sweden and Germany. The sales price for the two
companies' entire share capital is approximately NOK 800 million,
which gives Hydro an accounting gain of approximately NOK 600 million
when the transaction is completed.

BIS is a leading international company in maintenance and service
operations for the process industry. BIS is a subsidiary of the
Bilfinger Berger group, which has its HQ in Munich, Germany. The
company employs about 15,000 people and had a turnover of EUR 1.3
billion in 2006.

The sale comprises HPP's and PT's Norwegian operations in Grenland,
Rjukan, Karmøy, Høyanger, Årdal, Sunndal and Glomfjord, as well as
Stenungsund in Sweden and Neuss in Germany. The sale will result in
the continuation of HPP's and PT's activities with an owner whose
core business comprises these activities. Hydro will retain 15
percent of the shares in HPP and PT until the end of 2009. The shares
will then be sold to BIS at the agreed price, plus a premium
reflecting the companies' earnings for the period.

HPP and PT had a turnover in 2007 of approximately NOK 2 billion,
following solid growth in 2006. Roughly two-thirds of this turnover
is derived from long-term contracts and the biggest customers are
found in process industries and energy production. HPP and PT have a
total order reserve of about NOK 3.6 billion.

The transfer can formally take place when the approval of the
competition authorities in the countries in question has been
obtained, and the outstanding formalities between the parties

"The agreement supports Hydro's strategy of focusing on the
production and manufacture of aluminium. An important concern of ours
has been to see that the HPP and PT employees' jobs are secured and
that their expertise continues to be utilized in a company with a
long-term commitment to industrial maintenance, projects and
service," comments Executive Vice President John O. Ottestad in

"Its expertise and size makes Bilfinger Industrial Services a good
owner. We are also confident of further development and growth. This
sale is in accordance with our previously announced plans, and all
existing contracts will continue," states HPP's Managing Director,
Morten Mathisen.

"With this important acquisition Bilfinger Berger Industrial Services
AG intensifies its growth in Norway and Scandinavia. The services
offered by the Hydro companies extend our product spectrum in an
ideal way, enabling us to offer a complete range of industrial
services in Scandinavia," comments Chief Executive Officer Thomas
Töpfer of Bilfinger Berger Industrial Services AG.

Certain statements contained in this announcement constitute
"forward-looking information" within the meaning of Section 27A of
the US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended. In order to utilize the
"safe harbors" within these provisions, we are providing the
following cautionary statement.

Certain statements included within this announcement contain (and
oral communications made by us or on our behalf may contain)
forward-looking information, including, without limitation, those
relating to (a) forecasts, projections and estimates, (b) statements
of management's plans, objectives and strategies for Hydro, such as
planned expansions, investments or other projects, (c) targeted
production volumes and costs, capacities or rates, start-up costs,
cost reductions and profit objectives, (d) various expectations about
future developments in Hydro's markets, particularly prices, supply
and demand and competition, (e) results of operations, (f) margins,
(g) growth rates, (h) risk management, as well as (i) statements
preceded by "expected", "scheduled", "targeted", "planned",
"proposed", "intended" or similar statements.

Although we believe that the expectations reflected in such
forward-looking statements are reasonable, these forward-looking
statements are based on a number of assumptions and forecasts that,
by their nature, involve risk and uncertainty. Various factors could
cause our actual results to differ materially from those projected in
a forward-looking statement or affect the extent to which a
particular projection is realized. Factors that could cause these
differences include, but are not limited t our continued ability to
reposition and restructure our upstream and downstream Aluminium
business; changes in availability and cost of energy and raw
materials; global supply and demand for aluminium and aluminium
products; world economic growth, including rates of inflation and
industrial production; changes in the relative value of currencies
and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
For a detailed description of factors that could cause our results to
differ materially from those expressed or implied by such statements,
please refer to the risk factors specified under "Risk review - Risk
factors" on page 134 of our Annual Report 2006 (including Form 20-F)
and subsequent filings on Form 6-K with the US Securities and
Exchange Commission.

No assurance can be given that such expectations will prove to have
been correct. Hydro disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

Lars Nermoen, Public Affairs Manager, Hydro
t: + 47 22538060 / m: +47 90240153 / e: Lars.Nermoen@hydro.com

Stefan Solberg, Head of Investor Relations, Hydro
t: +47 22539280 / m: +47 91727528 / e: Stefan.Solberg@hydro.com

Alexander Görbing, Head of Corporate Communications, Bilfinger Berger
Industrial Services AG
t: +49 (0) 89 1 49 98 135

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