Partial Reversal of Restructuring Charge Reflected in 1999 Preliminary Financial Report

As previously announced, Norsk Hydro, the Norwegian oil and energy, light metals and agriculture group, will reduce its production of nitrate fertilizer by in excess of one million tons per year or roughly 20 % of Hydro’s nitrate production capacity. This will be accomplished by the closure of nitrate fertilizer production at three plants, one of which is located in Montoir, France. This plant also produces NPK fertilizer, which is technically interconnected with the nitrate production so that both product lines were envisaged to be closed simultaneously. This was accounted for in the originally announced restructuring charge of NOK 960 million in the fourth quarter of 1999 related to the plant closures.

Hydro has now determined to reduce the restructuring charge to NOK 632 million given its decision to continue production of NPK fertilizer at the Montoir plant. Of the NOK 328 million reduction, NOK 158 million represents accruals and NOK 170 million represents write-downs. The resulting improvement in Hydro’s net income will also be NOK 328 million.Two independent events have contributed to this decision:

1. A technical and economically viable solution has been identified that will enable production of specialty fertilizers with sulphur at the Montoir plant, along with NPK, and provide positive annual cash flow from the plant’s operation.

2. Recent communication from French government authorities suggest that a complete shut down of production would introduce costs that could not have been anticipated at the time the plant closure decision was made.

Hydro is intensifying its efforts to improve the financial performence of its agriculture business, one of the company’s core business areas. Continuation of the Agenda 99 cost reduction initiatives remains a top priority. In connection with the restructuring measures published in December 1999, Hydro estimates that the provision for manning redundancies will be NOK 130 - 170 million in the first quarter of 2000. An additional estimated NOK 60 - 70 million is expected to be charged in the second quarter of 2000, related to the nitrate restructuring. Additional charges are anticipated later in 2000 relating to other previously announced improvement programs that will result in demanning and cost savings