Sales and marketing cooperation between Norsk Hydro and SQM

Norsk Hydro, the oil and energy, light metals and agri group, has agreed to sign a Letter of Intent to enter into a new commercial agreement with the Chilean company SQM in the field of speciality fertilizers. The proposed new agreement would replace and extend the commercial agreemeent signed during the first quarter of 1999, through which SQM in certain markets commercializes Calcium Nitrate produced by Norsk Hydro and Norsk Hydro in the north of Europe commericalizes Potassium Nitrate produced by SQM.

The proposed new agreement will broaden the commercial cooperation in world markets for speciality fertilizers, allowing SQM to utilize the distribution network of Norsk Hydro in countries where the presence and commercial infrastructure of Norsk Hydro is bigger than that of SQM. In the same way, in markets where SQM's presence is the greater, the speciality fertilizers of both parties will be commercialized through SQM's offices. Both companies will retain significant control over the commercialization of their own products.

The proposed cooperation will allow both parties to reduce their sales and distribution costs and at the same time increase the range of products offered to clients by drawing upon the joint range of products in this field.

In addition, the parties intend to establish a new joint production company in Europe to which SQM and Norsk Hydro will transfer their existing soluble fertilizer blending operations. The proposed new company will be able to achieve synergies and cost savings in production, administration and commercialization of soluble blends, while strengthening the development of new products and improving the service to customers in Europe.

Transactions contemplated in the Letter of Intent are subject to the approval of the Board of Directors of both companies and receipt of all necessary legal and regulatory approvals.

Certain statements in this press release 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.