Closure of the sulphate production at Oberhausen

Hydro has decided to withdraw from its production activity and related trading activities operated by Hydro Chemicals Deutschland GmbH in Oberhausen in Germany. Production capacity of about 40.000 tonnes of sulphates and about 60.000 tonnes of hydrochloric acid will be closed as a result of this decision, whereas a process of seeking new owners to parts of the activities is ongoing. The decision is part of the Agri Turnaround Programme, aiming to improve profitability and increase focus on core business in the Agri area.

Closure costs and write-offs totalling an estimated 70 million NOK will be charged to Hydro’s third quarter result this year, while we expect costs for the social plan to be charged in the fourth quarter. The closure and related plans will affect about 70 jobs, and negotiations with employee representatives to establish the social plan are about to start. We estimate that the total costs for closure of production including demanning will be covered within the expected charge for non-recurring items for the year 2000 that was presented with Hydro’s second quarter results in July.

Production at Oberhausen will continue until the end of the year. Hydro Chemicals
Deutschland’s remaining business with a yearly turnover of about 35 million EURO will be merged with Hydrogas Deutschland GmbH by January 1, 2001.

Certain statements in this press release, including statements are or may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not in the nature of historical facts may be deemed to be forward-looking statements and may contain identifying words such as "believes", "anticipates", "plans", "expects" and similar expressions. These forward looking statements are based on Hydro’s current expectations, assumptions, estimates and projections about the company and the industries in which it engages in business. All forward-looking statements involve risks and uncertainties. For a detailed description of factors that could cause Hydro’s actual results to differ materially from those expressed in or implied by such statements, please refer to its annual report on Form 20-F for the year-ended December 31, 1999 and subsequent filings on Form 6-K with the U.S. Securities and Exchange Commission.